Yen backs off seven-month high as global markets rebound
The Japanese yen fell in Asian trade on Wednesday against a basket of major rivals, extending losses for the second straight session against the dollar and plumbing a week low, and backing off from seven-month highs on profit-taking.
It comes amid a strong recovery wave in the global markets as US President Donald Trump backs off his threats to fire Fed Chair Jerome Powell, restoring investor confidence.
Recent remarks by US Treasury Secretary Scottt Bessent also boosted optimism about reaching trade agreements with major partners, including China, in the near future.
The Price
The USD/JPY price rose 1.2% today to 143.22 yen per dollar, a week high, with a session-high at 141.45.
The yen lost 0.5% on Tuesday against the dollar, marking the first loss in three days on profit-taking away from seven-month highs at 139.88.
Trump’s Reassurances
US President Donald Trump assured the markets he doesn’t intend to fire Fed Chair Jerome Powell despite his disappointment from the slow pace of policy easing.
Trump told reporters in the White House that he never tried to fire him, but he would like to see him more active about interest rate cuts.
It comes after a series of heavy Trump attacks against Powell on social media, calling him a big loser and asserting his authority to fire him.
Potential Trade Deals
Markets were boosted as investors bet the US will reach trade deals with China and other trade partners in the near future.
US Treasury Secretary Bessent said he expects a de-escalation in the trade war with China in the very near future, calling the current confrontation “unsustainable”.
Ethereum rallies over 8% as crypto demand rebounds
Most cryptocurrencies rallied on Tuesday as the risk appetite improves and demand on bitcoin surges, with bitcoin passing the $90,000 barrier once more.
The White House said nearly 18 countries already presented proposals for trade deals with the US.
White House Spokeswoman Caroline Levett said that work is being done to reach a trade deal with China despite there not being direct talks between Presidents Trump and Jinping.
US Treasury Secretary Scott Bessent said the trade war with China is currently unsustainable, expecting the situation to settle down soon.
The International Monetary Fund announced a major cut in its forecasted for global GDP growth in 2025, revising them downward to 2.8% from 3.3% in previous January forecasts, while cutting 2026 forecasts to 3.0% from 3.3%.
The IMF attributed the downgrade to the impact of the US tariffs, which disrupted global trade and supply chains.
The steep downgrade reflects the growing concerns about the ramifications of US trade policies, as major tensions flare with trade partners such as China and the EU, which could lead to an even slower worldwide growth.
The IMF cut US GDP growth forecast for 2025 from 2.7% to 1.8%, but still put a 40% chance of a US recession this year.
Ethereum
On trading, ethereum surged 8.5% on Coinmarketcap as of 18:54 GMT to $1706.
Gold backs off record highs as dollar strengthens
Gold prices lost ground on Tuesday as the dollar rallied against most major rivals, with the precious metal losing its haven appeal as concerns about the trade war calmed down.
The White House said nearly 18 countries already presented proposals for trade deals with the US.
White House Spokeswoman Caroline Levett said that work is being done to reach a trade deal with China despite there not being direct talks between Presidents Trump and Jinping.
US Treasury Secretary Scott Bessent said the trade war with China is currently unsustainable, expecting the situation to settle down soon.
The International Monetary Fund announced a major cut in its forecasted for global GDP growth in 2025, revising them downward to 2.8% from 3.3% in previous January forecasts, while cutting 2026 forecasts to 3.0% from 3.3%.
The IMF attributed the downgrade to the impact of the US tariffs, which disrupted global trade and supply chains.
The steep downgrade reflects the growing concerns about the ramifications of US trade policies, as major tensions flare with trade partners such as China and the EU, which could lead to an even slower worldwide growth.
The IMF cut US GDP growth forecast for 2025 from 2.7% to 1.8%, but still put a 40% chance of a US recession this year.
Otherwise, the dollar index rose 0.6% as of 18:33 GMT to 98.8, with a session-high at 98.8, and a low at 98.01.
On trading, gold spot prices fell 0.7% as of 18:34 GMT to $3401.4 an ounce.
Wall Street recovers partially with Dow Jones rallying 800 points
US stock indices rose on Tuesday amid attempts to recoup some of the hefty losses sustained yesterday as US President Trump threatened to blow away the independence of the Federal Reserve.
The International Monetary Fund announced a major cut in its forecasted for global GDP growth in 2025, revising them downward to 2.8% from 3.3% in previous January forecasts, while cutting 2026 forecasts to 3.0% from 3.3%.
The IMF attributed the downgrade to the impact of the US tariffs, which disrupted global trade and supply chains.
The steep downgrade reflects the growing concerns about the ramifications of US trade policies, as major tensions flare with trade partners such as China and the EU, which could lead to an even slower worldwide growth.
The IMF cut US GDP growth forecast for 2025 from 2.7% to 1.8%, but still put a 40% chance of a US recession this year.
On trading, Dow Jones rallied 2.1%, or 800 points to 38,970 points, while S&P 500 rallied 2.1%, or 107 points to 5264 points, as NASDAQ jumped 2.3%, or 362 points to 16,232 points.