Fed’s Miran: Warsh is a fantastic pick

Federal Reserve (Fed) Governor Stephen Miran said that he is really excited to see the good work he believes Kevin Warsh will do as Fed Chair after being nominated by President Donald Trump. In an interview with CNBC on Friday, he added he believes Fed officials will receive him well.

KRW: BOK to maintain rates amid low inflation – DBS Bank

DBS Bank’s Group Research projects that the Bank of Korea (BOK) will keep its base rate unchanged at 2.50% throughout 2026. The report indicates that January inflation is expected to ease, reflecting subdued demand-side pressures and stable supply-side conditions.

Fed’s Bostic: Fed needs to remain vigilant

Federal Reserve (Fed) Bank of Atlanta President Raphael Bostic said that inflation is too high and needs to come down, and that the Fed should be more patient for now, in an interview for CNBC.

USD/INR: Key budget announcement ahead – MUFG

The Indian Rupee remains under pressure as USD/INR approaches the 92.00 level. The upcoming FY2026/27 Budget announcement is crucial for assessing fiscal consolidation amidst rising capital outflows.

Fed’s Waller: Labor market remains weak

Federal Reserve (Fed) Board of Governors member Christopher Waller said he dissented in favor of a 25 bps interest rate cut this week because monetary policy is still restricting economic activity too much, in a statement released on Friday.

GBP/USD slips below 1.3800 as Warsh nomination, hot PPI boost USD

The Pound Sterling (GBP) retreats on Friday, remaining below 1.3800 against the US Dollar (USD) after the Trump administration announced that Kevin Warsh would lead the Federal Reserve (Fed). Additionally, a red-hot inflation report on the producer front boosted the Greenback’s appeal.

AUD/USD corrects from three-year high amid US Dollar recovery

AUD/USD trades around 0.7000 on Friday at the time of writing, down 0.60% on the day, after retreating from a three-year high reached earlier this week. The pair thus snaps a three-day winning streak, amid a technical correction and a modest recovery in support for the US Dollar (USD).

Oil: Bearish fundamentals signal pull-back – TD Securities

TD Securities‘ Ryan McKay highlights a shift in oil market fundamentals, suggesting a potential pull-back in prices. The report indicates that a loosening of near-term fundamentals could reduce crude oil prices by at least $2-3/bbl, while geopolitical risks may also impact market dynamics.

USD: Range-bound outlook amid Fed dynamics – BBH

Brown Brothers Harriman (BBH) reports that the Dollar has recovered within its multi-month range. Analysts expect the Dollar to hold within this range due to the Fed’s cautious approach to monetary policy.

GBP/JPY steady near weekly highs as Yen weakens on softer Tokyo inflation

The British Pound (GBP) trades firmer against the Japanese Yen (JPY) on Friday, as softer-than-expected Tokyo Consumer Price Index (CPI) data weigh on the Yen and revive doubts over the pace of policy normalisation by the Bank of Japan (BoJ). At the time of writing, GBP/JPY is trading around 212.16

US headline Producer Prices rose by 3% in December

US Producer Prices rose 3% in December from a year earlier, according to the latest figures from the Bureau of Labor Statistics (BLS). The print came in above estimates (2.7%) and matched the 3% gain recorded in the previous month.

JPY: Patient BOJ outlook amid easing inflation – BBH

Brown Brothers Harriman (BBH) analysts note that the Bank of Japan can afford to be patient before raising rates, as inflation pressures are easing. Analysts suggest a potential decline in USD/JPY towards 140.00 by year-end, supported by US-Japan rate differentials.

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