Overview

• The dollar is on track for its best week against the yen in three months, largely due to hawkish comments from Federal Reserve Chair Jerome Powell and other Fed officials suggesting that further rate hikes could be possible to combat inflation.
• Cryptocurrencies Bitcoin and Ether have seen multi-month highs due to speculation regarding an imminent approval of BlackRock's spot bitcoin exchange-traded fund (ETF), which is expected to boost institutional investment in the crypto sector.
• Australian and New Zealand dollars are expected to have a significant weekly decline against the dollar due to falling oil prices, economic recovery struggles in China, and hawkish sentiments from the Federal Reserve.
• The euro and sterling are projected to lose 0.56% and 1.3% for the week, respectively. This comes as markets react to the Federal Reserve's hawkish tone, which has driven up the dollar while pulling down other currencies.
• Some economists suggest that inflation will fall rapidly next year and return to the Federal Reserve's preferred annual rate of 2% by mid-2024, which could potentially ease upward pressure on interest rates.