News

• Won’t comment on specifics on interest rates
• Long-term rates are rising rather rapidly recently
• Will increase JGB purchases if long-term rates make abrupt moves
• Will pay close attention to market moves
• Real interest rates are significantly low
• Will adjust degree of monetary easing if economic, prices trends move in line with forecasts
• Gathering information on companies’ stance on wages for next year

This article was written by Giuseppe Dellamotta at investinglive.com.

The GBP/USD pair attracts some buyers following the previous day’s two-way directionless price move and holds steady above the 1.3300 mark during the Asian session on Tuesday.

Silver price (XAG/USD) trades in a tight range around $58.00 during the late Asian trading session on Tuesday. The white metal turns sideways as investors await the monetary policy announcement by the Federal Reserve (Fed), scheduled for Wednesday.

Japanese Prime Minister Sanae Takaichi said on Tuesday that she will make appropriate economic and fiscal decisions at appropriate timing. Takaichi further stated that she will take into account interest rates, foreign exchange and prices.

The GBP/USD pair attracts some buyers following the previous day’s two-way directionless price move and holds steady above the 1.3300 mark during the Asian session on Tuesday.

• Will make appropriate economic, fiscal decisions at appropriate timing while taking into account interest rates, FX and prices
• Watching market moves closely
• Important for currencies to move in stable manner reflecting fundamentals
• Difficult to single out impact of fiscal policy on interest rates, FX as they are determined by various factors

Feels like Japanese officials are really getting worried about the JPY weakness despite the incoming BoJ rate hike. I think part of the problem is that they’ve waited for too long and are now considering rate hikes right when the others are shifting to a hawkish stance too.

This article was written by Giuseppe Dellamotta at investinglive.com.

The Dow Jones Industrial Average fell back from the 48,000 handle on Monday as investor expectations for an upcoming interest rate cut from the Federal Reserve (Fed) were overridden by a fresh upswing in 10-year Treasury yields.

• RBA decision: Case rate set at 3.60% vs 3.60% expected
• RBA’s Bullock: Discussed circumstances in which we might have to tighten
• Full text of the RBA decision on Dec 9, 2025
• Australian November NAB business conditions +7 vs +9 prior
• UK BRC November retail sales +1.2% y/y vs +1.5% prior
• Trump threatens Mexico tariffs due water treaty violations

Markets:

• Gold flat
• WTI crude oil down 21-cents to $58.67
• US 10-year yields up 0.4 bps to 4.17%
• S&P 500 futures up 0.1%
• Nikkei up 0.2%
• AUD leads, CHF lags

The RBA decision was the main event of the day and it put some life into the FX market. The kneejerk was lower in AUD/USD but only for a minute as it quickly rebounded to 0.6625. The market was perhaps looking for more of a hawkish signal that wasn’t there in the statement but it certainly appeared with Bullock, who said the board envisioned staying on a long pause or hiking and that cuts weren’t envisioned. She also singled out the upcoming meeting in February as one where they will be looking carefully at inflation data, though the market still only sees a 25% chance of a hike.

Further out, we now have nearly 2 rate hikes priced in for 2026 and that’s led to a climb in AUD/USD to 0.6640, about 20 pips above the levels before she spoke.

Elsewhere, we are seeing some USD/JPY strength kick in as the pair trips stops above 156.00 and touches the best levels since Dec 2. Notably, that Dec high of of 156.18 is in range and Treasury yields are higher again.

Aside from that, the ranges have been tight in FX and global equities. Gold perked up earlier but couldn’t get through $4200 and has now slipped to $4185.

This article was written by Adam Button at investinglive.com.

US is to allow Nvidia H200 chip exports to China.

• Some analysts view such a move as a “strategic win-win,” arguing that allowing H200 shipments would sustain China’s reliance on U.S. AI infrastructure — and potentially slow down the adoption of domestic alternatives
• The H200 is more capable than the chip China is currently allowed to buy (the H20), which gives it technical appeal for high-demand applications (large-model training, inference, data-center use cases)

Although good news, Jensen Huang, recently said he is not sure China would accept H200 even if restrictions are eased — Beijing may prefer home-grown chips or chips already certified under export rules. Chinese firms and regulators appear increasingly focused on domestic AI-chip makers (like Cambricon Technologies) and building self-sufficiency. There’s growing pressure—both economic and political—on companies not to rely solely on foreign hardware.

Nvidia shares have moved higher and are up $3.90 or 2.15% at $186.46.

This article was written by Greg Michalowski at investinglive.com.