USD/JPY Sets Sights On Fresh Gains: Bulls In Control

Titan FX

Economic

Forex

Summary:

USD/JPY started a fresh increase above the 156.00 resistance zone.

Key Highlights

USD/JPY started a fresh increase above the 156.00 resistance zone.

A major bullish trend line is forming with support at 156.80 on the 4-hour chart.

EUR/USD is still consolidating below the 1.0450 resistance zone.

Bitcoin failed to regain traction and declined from $100,000.

USD/JPY Technical Analysis

The US Dollar started a fresh increase above the 155.50 and 156.00 resistance levels. USD/JPY cleared the 157.00 level to move further into a positive zone.

Looking at the 4-hour chart, the pair settled well above the 156.50 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The bulls remained in control and might aim for more gains.

On the upside, the pair could face resistance near the 158.20 level. The next major resistance is near the 158.80 level. A close above the 158.80 level could set the tone for another increase.

In the stated case, the pair could rise toward the 160.00 resistance. On the downside, immediate support sits near the 156.80 level. There is also a major bullish trend line forming with support at 156.80 on the same chart.

The next key support sits near the 155.50 level. Any more losses could send the pair toward the 154.80 level. Any more losses might send the pair toward the 154.00 level.

Looking at Bitcoin, the bulls failed to push the price above $100,000 and there was a fresh bearish reaction.

Upcoming Economic Events:

US Wholesale Inventories for Nov 2024 (preliminary) – Forecast +0.2%, versus +0.2% previous.

Source: ACTIONFOREX

To stay updated on all economic events of today, please check out our Economic calendar

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Owen Li

Economic

Forex

AUD/USD continues to lose ground for the fifth successive day, trading around 0.6220 during the Asian session on Friday. The AUD/USD pair moves downwards as the US Dollar (USD) receives support from growing expectations of fewer rate cuts by the US Federal Reserve (Fed). In its December meeting, the Fed reduced interest rates by a quarter point and revised its 2025 projection to include only two rate cuts, down from the previously forecasted four.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against its six major peers, trades above 108.00, slightly below its highest level since November 2022. However, the upside of the Greenback could be restrained as 2-year and 10-year yields on US Treasury bonds remain subdued at 4.32% and 4.57%, respectively, at the time of writing.

The Australian Dollar (AUD) faces pressure as the Reserve Bank of Australia (RBA) hints at potential rate cuts in 2025, with markets projecting a reduction to 3.6% by year-end. According to the latest RBA monetary policy minutes, the central bank appears increasingly confident that inflation is on a sustainable path toward its target.

Additionally, the AUD struggles due to increased risk aversion and growing concerns about China's economic health, a crucial factor given that China is Australia’s largest trading partner. However, the World Bank raised its growth forecast for China in 2024 and 2025 but cautioned that weak confidence and challenges in the property sector will continue to pressure the economy.

Traders were focused on China’s recent economic measures, including reports that officials have more flexibility to use government bond proceeds to stimulate growth, potentially boosting Oil demand from the leading consumer.

Australian Dollar FAQs

What key factors drive the Australian Dollar?

One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – is also a factor, with risk-on positive for AUD.

How do the decisions of the Reserve Bank of Australia impact the Australian Dollar?

The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive.

How does the health of the Chinese Economy impact the Australian Dollar?

China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs.

How does the price of Iron Ore impact the Australian Dollar?

Iron Ore is Australia’s largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD.

How does the Trade Balance impact the Australian Dollar?

The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.

Source: FXSTREET

To stay updated on all economic events of today, please check out our Economic calendar

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Justin

Economic

Forex

The NZD/USD pair extends its downside to around 0.5615 during the early Asian session on Friday. The New Zealand Dollar (NZD) weakens amid concerns about weak consumer demand and a prolonged downturn in the property market in China. The markets are likely to trade in a quiet session ahead of the New Year holiday.

Data released on Friday revealed that China’s industrial profits extended declines to a fourth straight month, falling 7.3% in November from a year earlier. Persistently weak Chinese domestic demand could undermine the China-proxy Kiwi, as China is the largest trading partner of New Zealand.

Furthermore, the speculation about a potential 10% tariff on Chinese goods from Donald Trump’s administration contributes to the NZD’s downside. Many analysts expect that Trump’s tariff policies could fuel inflation and might convince the Fed to slow or pause its rate decisions next year in a wait-and-see approach. This, in turn, might lift the Greenback and create a headwind for NZD/USD.

The markets anticipate the Reserve Bank of New Zealand (RBNZ) to deliver further interest rate cuts to stimulate growth after the country sank into recession in the third quarter (Q3). Markets have priced in nearly a 70% chance of a 50 basis points (bps) cut in February, and rates were seen declining to 3.0% by the end of 2025.

Source: FXSTREET

To stay updated on all economic events of today, please check out our Economic calendar

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Alex

Economic

Forex

USD/CAD faced a minor challenge of improved crude Oil prices.

Oil prices are set for weekly gains as reports suggest that European energy firms focus on Oil rather than renewables.

The Canadian Dollar may struggle due to rising expectations of the BoC easing rates to support growth.

USD/CAD remains tepid following two days of gains, trading around 1.4410 during the Asian hours on Friday. The USD/CAD pair holds minor losses as the Canadian Dollar (CAD) gains ground due to improved crude Oil prices, given Canada is the largest Oil exporter to the United States (US).

West Texas Intermediate (WTI) Oil price gains ground, trading around $69.50 per barrel at the time of writing. Crude Oil prices are being bolstered by reports that major European energy companies are focusing on Oil and gas rather than renewables for short-term profits, a trend expected to continue into 2025.

Canada's GDP likely contracted by 0.1% month-over-month in November, marking the first monthly decline of the year and reflecting the central bank's recent warnings and downgraded growth projections. The government also revised its GDP forecasts downward, lowering 2025 growth to 1.7% from 1.9% and 2026 to 2.1% from 2.2%. Rising expectations that the Bank of Canada (BoC) may further ease rates to support growth could widen the interest rate gap with the US, diminishing the CAD’s attractiveness.

The downside of the USD/CAD pair could be limited as the US Dollar (USD) gains ground due to growing expectations of fewer rate cuts by the US Federal Reserve (Fed). In its December meeting, the Fed reduced interest rates by a quarter point and revised its 2025 projection to include only two rate cuts, down from the previously forecasted four.

Canadian Dollar FAQs

What key factors drive the Canadian Dollar?

The key factors driving the Canadian Dollar (CAD) are the level of interest rates set by the Bank of Canada (BoC), the price of Oil, Canada’s largest export, the health of its economy, inflation and the Trade Balance, which is the difference between the value of Canada’s exports versus its imports. Other factors include market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – with risk-on being CAD-positive. As its largest trading partner, the health of the US economy is also a key factor influencing the Canadian Dollar.

How do the decisions of the Bank of Canada impact the Canadian Dollar?

The Bank of Canada (BoC) has a significant influence on the Canadian Dollar by setting the level of interest rates that banks can lend to one another. This influences the level of interest rates for everyone. The main goal of the BoC is to maintain inflation at 1-3% by adjusting interest rates up or down. Relatively higher interest rates tend to be positive for the CAD. The Bank of Canada can also use quantitative easing and tightening to influence credit conditions, with the former CAD-negative and the latter CAD-positive.

How does the price of Oil impact the Canadian Dollar?

The price of Oil is a key factor impacting the value of the Canadian Dollar. Petroleum is Canada’s biggest export, so Oil price tends to have an immediate impact on the CAD value. Generally, if Oil price rises CAD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Oil falls. Higher Oil prices also tend to result in a greater likelihood of a positive Trade Balance, which is also supportive of the CAD.

How does inflation data impact the value of the Canadian Dollar?

While inflation had always traditionally been thought of as a negative factor for a currency since it lowers the value of money, the opposite has actually been the case in modern times with the relaxation of cross-border capital controls. Higher inflation tends to lead central banks to put up interest rates which attracts more capital inflows from global investors seeking a lucrative place to keep their money. This increases demand for the local currency, which in Canada’s case is the Canadian Dollar.

How does economic data influence the value of the Canadian Dollar?

Macroeconomic data releases gauge the health of the economy and can have an impact on the Canadian Dollar. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the CAD. A strong economy is good for the Canadian Dollar. Not only does it attract more foreign investment but it may encourage the Bank of Canada to put up interest rates, leading to a stronger currency. If economic data is weak, however, the CAD is likely to fall.

Source: FXSTREET

To stay updated on all economic events of today, please check out our Economic calendar

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ACY

Economic

When I was a kid, I used to love watch the TV, and from one cartoon to another, the propaganda always came in saying something on those lines “the inflation rose X% from last month to this month, prices on the supermarket have increased by Y%” but I didn’t had a clue on what this was, and now everything makes sense!

Do you know what is inflation? How can such a small word with only 9 letters have a significant impact on our day-to-day life as well a massive impact on the financial markets? Especially on the forex market!

This may sound very new to you, so let’s start with the basics; inflation, on a simple term is the cost of a good or service that erodes as the years go by, if not the most important one if the most important fundamentals into the economy, where all the central banks pay pivotal attention and they even have targets! Every Central bank has an inflation target that they must keep with, the target makes sure that the economy will be on the right path not to hot and not to cold. Every country has a different target, for example in Australia we have the target between 2-3%.

Understanding Inflation and Its Profound Impact on the Forex Market_1

USA for example have different target at 2% only and not a variable inflation targets between 2-3% like Australia.

Inflation is used as an indicator that reflects changes in buying power and economic stability. This phenomenon influences not only domestic economies but also the global financial markets, including the forex market. Its role in shaping monetary policy, influencing currency valuations, and driving investment strategies makes it an indispensable subject of study for expert traders or even for those who are starting.

Origins and Dynamics of Inflation

What is Inflation?

Inflation is the rate at which the general level of prices for goods and services rises, eroding the purchasing power of money. While moderate inflation is associated with economic growth, excessive inflation or hyperinflation can destabilise economies, because with a higher inflation we will have higher rates therefore the products will be extensive as well if you plan to buy a house on a hyperinflation scenario you would be paying the inflation price + the rates from central bank + the rates from what your bank may give you! This will lead to reduced investments… and an erosion of consumer confidence.

The opposite can happen as well as disinflation scenario where what I just said is completely the opposite, the inflation will so low that the central bank will lower the rates in hopes that the population will spend money into the economy making it hotter and to grow quicker. This will lead to diminished savings as the rates will be lower people like me, and you will not leave the money on the saving account, right? As it will not be paying as before on a higher rates scenario. We spend this money into a gift for ourselves or even something cool for the day-to-day life. But this is not all flowers as can weaken the currency as well make the economy very weak, and if not well controlled by the central bank it can get the country economy into a depression…

Historical Perspectives

The concept of inflation has been central to economic thought since the advent of monetary systems. It traces its roots to the introduction of fiat money, where currency value is not tied to a physical commodity like gold or silver. The establishment of the Bank of England in 1694 marked a pivotal moment in regulating money supply and addressing inflationary pressures. Throughout history, events such as the Great Depression of the 1930s, the stagflation of the 1970s, and the global financial crisis of 2008 and the most recent COVID-19 2021 have highlighted the profound influence of inflation on global economies and financial stability.

An interesting question… have you ever thought about what the first few currencies was we had at society, to all the way where we are now?

Before the invention of currency, societies relied on the barter system, where goods and services were exchanged directly. For example, you have a pig, and I have a cow, you want a cow, and I want a pig, both of us are willing to exchange our goods to each other, therefore we make a barter! You get my cow, and I get your pig. However, this system was inefficient due to the "double coincidence of wants"—the need for both parties to want what the other offered.

To overcome this limitation, early civilisations developed standardised mediums of exchange. These first forms of currency were not coins or paper like we have sophisticate machine printing it all day today but rather they have used commodity money, items with intrinsic value.

Shells: Cowrie shells were used in Africa, Asia, and Oceania for centuries as currency due to their durability and aesthetic value.

Precious Metals: Gold, silver, and copper became widely used due to their durability, divisibility, and inherent value. These metals were often traded by weight before being minted into coins.Interesting enough, we can look at the chart below how the value of gold has been so incredible, as it serves as well for a protection against the inflation! The gold price has rose close to 4000%! (in USD).

Understanding Inflation and Its Profound Impact on the Forex Market_2

The First Coined Currency

The first officially minted coins appeared around 600 BCE in the ancient kingdom of Lydia, in what is now modern-day Turkey. These coins, known as Lydian staters, were made of a naturally occurring alloy of gold and silver called electrum. Their introduction marked a revolutionary moment in the history of money, as they provided a standardised and portable form of wealth.

The use of coins spread rapidly across the Mediterranean and beyond, facilitated by empires like the Greeks and Romans. Coins were eventually complemented by paper money, first issued in China during the Tang Dynasty (7th century) and later formalised during the Song Dynasty in the 11th century.

What can cause inflation?

In January, this year 2024 I was heading to my favourite bakery to get my favourite bread that I found in December 2023, arriving there I found that the bread that I loved is now costing a bit more than it did last month. Why does this happen? There are many reasons inflation can creep into our day to day lives—over seven, in fact—but let us focus on the three most common and relatable causes:

Picture this: it is the holiday season, and everyone is rushing to buy the hottest new iPhone 16 pro max 1 TB. The shelves empty faster than the Apple can restock. As more clients come in to get the brand-new iPhone and apple staffs cannot handle it to make over 100,000 iPhones per hour, the natural effect will be prices shoot up. This is demand-pull inflation, and it often shows up in booming economies where people have more money to spend, but the supply chain struggles to keep up.

Now, imagine that bread again. What if the price of wheat skyrockets due to a poor harvest as December was a very raining season, or fuel costs rise because of the geopolitical uncertainties around the eastern, making transportation more expensive? These higher production costs get passed down to us, the final consumer, in the form of pricier bread. This is cost-push inflation—it happens when raw materials or wages become more expensive, and businesses must charge more to cover their costs, and then they include the inflation that they got charged into the price of our end final product so, yes, we are paying “double inflation”.

Finally, there is a more psychological aspect: inflation expectations. Suppose you hear that prices are likely to rise next month. What do you do? You might rush to the supermarket to buy items now before they become more expensive. But this increased spending fuels demand, which can ironically push prices up even faster. It is a self-fulfilling prophecy that keeps inflation spiralling upward.

Inflation is not just numbers on a chart it is something we feel in our everyday lives, from the grocery store to the gas pump. By understanding these causes, we can start to see the patterns and make better decisions about how we navigate rising costs.

Understanding Inflation and Its Profound Impact on the Forex Market_3

What are the tools we can use to measure the inflation?

It’s very important to know how to measure the inflation, but let me be clear with you, there is no 100% prediction ratio for measuring the inflation, but we can always assume that is a close call from what we can possibly imagine, you first need to know some basics about it.

Consumer Price Index (CPI)

The CPI is the most widely recognised measure of inflation. It tracks changes in the price level of a fixed basket of consumer goods and services over time. The index is often presented as:

Headline CPI: Captures all items, providing an overarching view of inflation trends.

Core CPI: Excludes volatile categories such as food and energy to offer a clearer perspective on sustained inflationary trends.

The reason why is divided by 2 releases is simple, on the Headline inflation we have the added of the most volatility items such as the food and the electricity prices, this is something that the central bank can directly control or reduce the inflation on, but is very important to understanding how the headline inflation is, what the central bank really pays attention is the CORE CPI, this is where we have the exclusion of food and energies prices to make it more reliable for the central bank, as all the items on this basket they can control by the rates.

A higher inflation makes a currency stronger, as the Central bank will have to control the inflation by raising the rates (this is only one of the many other ways a central bank can adopt to control the inflation) as the inflation grows and the central bank make the rates tighter, the investor around the world will be sicking more return for their portfolio and therefore they will be investing on higher rates countries making the currency stronger because the demand for that currency will be higher.

A low than expected release can occasioned the opposite, making the investors getting out of the country and looking for better opportunities.

Producer Price Index (PPI)

Unlike the CPI, which focuses on consumer prices, the PPI measures changes in prices at the producer level. It offers early insights into potential inflationary pressures as increased production costs are often passed on to consumers. Remember when we have talked about the cost-push-inflation where you get charged double inflation, the PPI will show us on a monthly, quarterly, and early basis if the inflation for the producers is higher or lower.

Big Mac Index

What? Big Mac when we talking about such an important topic? YES! Big Mac!

I was exactly like you, and I heard about the big mac index, shocked, what is this?

The Big Mac Index is an informal measure of currency valuation created by The Economist in 1986. It uses the price of a Big Mac, a globally standardised product offered by McDonald's as a benchmark to assess the relative purchasing power of different currencies. It offers a simplified way to evaluate whether a currency is undervalued or overvalued compared to another currency, based on the principle of Purchasing Power Parity (PPP).

PPP is an economic theory saying that in an ideal world, identical goods should cost the same in every country when their prices are expressed in a common currency. For example, if a Big Mac costs $5 in the United States and £3.50 in the UK, the PPP exchange rate would be:

Understanding Inflation and Its Profound Impact on the Forex Market_4

If the actual exchange rate differs significantly from this PPP rate, the currency is considered misaligned:

If the actual exchange rate is higher, the currency is overvalued.

If the actual exchange rate is lower, the currency is undervalued.

Inflation Expectations Surveys

Central banks often gauge public and market expectations through surveys. These insights are pivotal in shaping monetary policies, as expectations influence consumer behaviour and wage negotiations, which in turn impact inflation.

Economic Data Releases

Regular statistical updates from government agencies, detailing monthly, quarterly, and annual inflation metrics, play a critical role in economic analysis. Platforms like Forex Factory’s economic calendar enable traders to track these releases, expecting market movements.

Inflation Rates Across Economic Contexts

Developed Economies

Developed economies such as the US, UK, and Eurozone nations often show low and stable inflation rates, with central banks targeting around 2%. This predictability fosters long-term investment and economic stability. Central banks like the Federal Reserve and the European Central Bank employ inflation targeting frameworks to manage economic growth while maintaining price stability.

Emerging Markets

In contrast, appearing economies, including Brazil, India, and South Africa, often experience higher inflation volatility. Factors such as commodity dependency, political instability, and structural inefficiencies contribute to these fluctuations. For instance, Brazil’s inflation rates have historically mirrored the volatility of its exchange rates and fiscal imbalances.

Inflation’s Influence on the Forex Market

Interest Rate Differentials

Inflation significantly affects currency values through interest rate policies. Central banks often raise interest rates to combat high inflation, attracting foreign capital and strengthening the currency. Conversely, low inflation may lead to accommodative monetary policies, weakening the currency. The US dollar (USD), for example, often appreciates when the Federal Reserve signals rate hikes in response to rising inflation.

Purchasing Power Parity (PPP)

PPP theory asserts that exchange rates should adjust to equalise the price of identical goods between countries. Inflation differentials play a crucial role in this adjustment. Tools like the Big Mac Index offer a practical demonstration of PPP in action, highlighting how inflation impacts currency valuation.

Market Volatility

Inflation data releases are among the most significant drivers of forex market volatility. Unexpected inflation figures can lead to rapid shifts in exchange rates as market participants adjust their expectations for future monetary policy actions.

Ok, now, how to trade the inflation reports?

Trading the CPI is easy when done on the right way, it can be incredibly rewarding if approached with a solid strategy. Here is how I trade these releases keeping it straightforward yet precise.

But before diving into how to trade the CPI, you will need to understand how I score the major pairs in forex. I have developed a system that provides a framework for figuring out the relative strength or weakness of each currency. You can watch the video by clicking play on the video below:

Now that you understand how to measure the weakness or strength of the currency you have my holy grail. This fundamental principle drives my approach that is to trade the strong currency against the weaker currency. Let me walk you through an example to illustrate:

Imagine the scoring system assigns EUR a -2 and USD a +1.

The Eurozone's CPI release is scheduled in 15 minutes, and the market expects a specific value (the consensus).

If the CPI comes in lower than expected and there are no adjustments to the previous release, it signals even more weakness in the euro, because investors will be looking to place their money into other countries remember that we’ve covered that just a few minutes ago?

With this scenario, my trade would be to short EUR/USD. But why?

The euro, already weak based on our scoring analysis, is further weakened by the disappointing CPI release.

The USD, comparatively stronger, makes it the ideal counterpart for this trade.

One last thing that you should understand is that this is a scalp nature trade and should be traded only on high impact news events, I like to trade these events for a maximum of 5 to 10 minutes with the trade open.

By combining a robust scoring system with a clear understanding of inflation data, you can trade CPI reports effectively while minimising unnecessary risks.

Here is an example of a real trade;

The Japan inflation was due on 20/12/2024 the expectation for the inflation was at 2.5%, Jpanese yen was trading with a score of +1 and USD was trading at -1 scoring the release came as follow for the Japan CPI.

Understanding Inflation and Its Profound Impact on the Forex Market_5

With a higher-than-expected release for the Japan CPI, we could use the strength of the JPY (at that moment) to long it against a weaker currency like the USD. Remembering that a weaker currency on the base (Base/Quote) and strong on the quote makes the chart go down, as the opposite makes the chart goes up.

Here is the trade to short USDJPY:

Understanding Inflation and Its Profound Impact on the Forex Market_6

Inflation’s Central Role in Forex Trading

Inflation remains a cornerstone of economic analysis, intricately linked to monetary policy, currency valuation, and market behaviour. By understanding its causes, measurement tools, and implications for the forex market, traders can develop robust strategies to navigate inflation-driven dynamics. Whether through interest rate speculation, strategic currency pair selection, or the use of custom indicators, forex participants can harness inflation insights to make informed trading decisions.

This in-depth exploration underscores the pervasive influence of inflation on global markets, equipping traders and economists with the expertise to translate economic theory into actionable strategies. As inflation continues to shape the financial landscape, mastering its intricacies will remain indispensable for success in the forex market.

To stay updated on all economic events of today, please check out our Economic calendar

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Alex

Economic

Cryptocurrency

A Bitcoin rally is fizzling in the final days of a record-breaking year for the digital asset, as investors assess the remaining impetus from President-elect Donald Trump’s embrace of the cryptocurrency sector.

The largest token changed hands at $95,600 as of 8:45 a.m. Friday in Singapore, holding a retreat of almost 3% from a day earlier. Smaller rivals including Ether and Dogecoin, a favorite of the meme crowd, struggled for traction.

Bitcoin Rally Fizzles as Token’s Record-Breaking Year Winds Down_1

Trump is pushing ahead with a promise to create a crypto-friendly environment in the US and has backed the idea of establishing a national Bitcoin reserve. Traders are waiting to see if such a stockpile is feasible.

The crypto market is also braced for the expiry of a substantial quantity of Bitcoin and Ether options contracts on Friday — one of the biggest such events in the history of digital assets, according to prime broker FalconX.

Sean McNulty, director of trading at liquidity provider Arbelos Markets, flagged the risk of a “choppy market” amid the expiry of the derivatives positions.

Bitcoin is wavering even after MicroStrategy Inc. this week signaled the possibility of expanding its program of purchases of the token. The company has transformed itself from a software maker into a Bitcoin accumulator and now owns more than $40 billion of the digital asset.

The original cryptocurrency is headed toward a drop for December, which would be its first monthly decline in four, according to data compiled by Bloomberg. Bitcoin reached a record high of $108,316 on Dec. 17 before pulling back. Bitcoin Rally Fizzles as Token’s Record-Breaking Year Winds Down_2

Bitcoin Rally Fizzles as Token’s Record-Breaking Year Winds Down_2

Source: Bloomberg

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Cohen

Economic

MELAKA (Dec 27): The Netherlands, Hong Kong and Japan are the top three investors in Melaka, said Chief Minister Datuk Seri Ab Rauf Yusoh.

He said the Netherlands had invested RM8.4 billion, creating 2,505 job opportunities, while Hong Kong invested RM1.7 billion (1,230 jobs), and Japan invested RM1.296 billion (7,359 jobs).

Ab Rauf also said that the electrical and electronics sector topped the investment list with a value of RM11.975 billion (generating 8,192 jobs), followed by non-metallic mineral projects amounting to RM1.840 billion (1,276 jobs), and machinery and equipment investments totalling RM1.671 billion (1,194 jobs).

“The Melaka government is committed to increasing investments in these sectors by exploring high-tech industrial development opportunities based on the principles of ESG (environmental, social and governance).

“Key initiatives include the development of new industrial areas, such as the MCorp Hi-Tech Park and the German Technology Park, to cater to investors’ growing focus on sustainable technology and innovation,” he said during the state assembly at Seri Negeri on Friday.

He was responding to a question from Datuk Zaidi Attan (Barisan Nasional-Serkam) regarding the top investing countries in Melaka, the sectors with high investments, and the number of jobs created.

Ab Rauf further said that the state aims to attract investors seeking modern infrastructure, a skilled workforce and sustainable development strategies.

He said this aligns with the state government’s efforts to boost Melaka’s competitiveness as an investment destination, especially in manufacturing sectors such as electrical and electronics, semiconductors, machining and equipment.

In addition, he said the state government had taken proactive steps to ensure an adequate supply of skilled workers, including establishing the Melaka TVET Council on Oct 29, 2022 to strengthen collaboration between industries and technical and vocational education and training (TVET) institutions.

“This council aims to address workforce gaps, and ensure that skills taught in TVET institutions align with current and industrial needs,” he said.

Source: Theedgemarkets

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USD/JPY Sets Sights On Fresh Gains: Bulls In Control

Key Highlights

USD/JPY Technical Analysis

Source: ACTIONFOREX

AUD/USD Falls To Near 0.6200 Due To Increased Likelihood Of RBA Rate Cuts In 2025

Australian Dollar FAQs

Source: FXSTREET

Nzd/usd Remains On The Defensive Near 0.5600 In Thin Year-end Trading

Source: FXSTREET

USD/CAD Depreciates To Near 1.4400 As Improved Oil Prices Support The Canadian Dollar

Canadian Dollar FAQs

Source: FXSTREET

Understanding Inflation and Its Profound Impact on the Forex Market

Origins and Dynamics of Inflation

Historical Perspectives

The First Coined Currency

What can cause inflation?

What are the tools we can use to measure the inflation?

Inflation Rates Across Economic Contexts

Emerging Markets

Ok, now, how to trade the inflation reports?

Inflation’s Central Role in Forex Trading

Bitcoin Rally Fizzles as Token’s Record-Breaking Year Winds Down

Source: Bloomberg

Melaka Getting Strong Investment From Netherlands, Hong Kong And Japan, Says Cm

Source: Theedgemarkets

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