Market News

The Bank of Japan raised its key short-term interest rate by 25 basis points to 1.25% in September, pushing borrowing costs to their highest level since April 1995 and taking another step away from decades of ultra-loose monetary policy.

The Federal Reserve raised interest rates for the first time since 2023, delivering a unanimous 25 basis point increase to 3.75%–4.00% in September.

The UK labor market continued to weaken in August 2026, with payroll employment declining for a seventh consecutive month. The number of payrolled employees fell by 26,000 from July to 30.2 million, marking the largest monthly decline since November 2025.

US producer prices rose 0.4% month-on-month in August, following a revised 0.1% increase in July. The reading matched market expectations and marked the strongest monthly increase in three years.

The Japanese yen has extended its recovery, pushing USD/JPY below 155 after a 1.2% decline on Monday and a nearly 2.4% drop last week. The move brought the yen to its strongest level against the dollar since February.

Scott Bessent’s Treasury strategy may begin in the bond market, but its effects could quickly spread to the dollar, gold, equities, Bitcoin and major FX pairs.

German consumer confidence showed further signs of recovery heading into September, although households remain cautious about spending. The GfK Consumer Climate Indicator rose to -26.6 for September 2026, up from a revised -29.4 in August.

The latest Federal Reserve minutes show that inflation remains a central concern for policymakers, even as recent economic data has reduced the urgency for another rate increase. Some officials believe price pressures are becoming more widespread, while a smaller group directly supported further tightening.