Japanese Yen falls as Fed Minutes revive tightening bets

The Fed's potential rate hikes could tighten liquidity, impacting crypto markets and prompting shifts in capital allocation strategies. The post Federal Reserve minutes reveal support for rate increases, Bitcoin drops 2.7% appeared first on Crypto Briefing.

The post Fed Minutes Flag AI Demand as Inflation Risk as Rate Hike Remains on the Table appeared on BitcoinEthereumNews.com. The latest Fed minutes have highlighted the risk that AI demand could have on inflation as the Fed continues to hold rates steady. The minutes also signaled that a hike is still on the cards if inflation remains elevated and fails to fall to the 2% target. Fed Minutes Flag Inflation Risk Driven By AI Demand The Federal Reserve minutes from the June FOMC meeting highlighted multiple scenarios regarding the outlook for monetary policy. Most participants pointed to scenarios in which the labor market remains stable while inflation remains elevated due to strong AI-related demand, the Middle East conflict, or the effects of tariffs. In such scenarios, almost all of the participants indicated that some policy firming would be necessary to return to their 2% target. Furthermore, the Fed minutes showed that most participants commented on scenarios in which inflationary

The post Japanese Yen: Market probes intervention risk – ABN AMRO appeared on BitcoinEthereumNews.com. Georgette Boele at ABN AMRO highlights persistent weakness in the Japanese Yen as investors test authorities’ tolerance for depreciation. Fiscal expansion and a dovish Bank of Japan stance weigh on the currency, while Japan’s energy-importer status adds pressure. With stretched long-Dollar/short-Yen positioning and explicit upside levels, she warns that any intervention-driven reversal in USD/JPY could be sharp and lasting. Authorities’ tolerance for yen weakness “Despite these factors, we noted in last week’s FX Weekly that the risk of intervention in the yen had increased.” “USD/JPY is now approaching last week’s high of 162.84 and could move towards 164.50.” “The fact that intervention has not yet happened does not mean it will not happen.” “As we mentioned last week, positioning remains stretched: the market is long US dollars and very short yen.” “If sentiment turns in favour of

AI-driven inflation risks could lead to prolonged high interest rates, impacting economic growth and dampening risk asset attractiveness. The post Federal Reserve cites AI demand as inflation risk in latest minutes appeared first on Crypto Briefing.

Rising oil prices and geopolitical tensions may drive inflation, prompting potential Fed rate hikes, impacting economic stability and growth. The post US stocks fall as oil surges on renewed US-Iran tensions appeared first on Crypto Briefing.

AI demand's inflationary impact may prompt tighter Fed policies, affecting economic stability and market expectations for future rates. The post Fed minutes highlight AI demand as new inflation risk appeared first on Crypto Briefing.

The post Bitcoin Drops Gains As Bulls Cut Risk Ahead of Fed Minutes Release appeared on BitcoinEthereumNews.com. Bitcoin (BTC) trades slightly above $62,000 and is down nearly 2% over the past 24 hours amid a risk-off mood across global markets. The pressure is not coming from crypto exclusively and is more so attributed to a sharp selloff in semiconductor and AI stocks.  Renewed profit-taking from Samsung sent Asian markets reeling overnight, and military escalation between the US and Iran sent oil up around 5%. As a result, US stocks opened lower, and on Wednesday the Federal Reserve released the minutes from its June meeting, a report traders typically watch closely for clues on the timing of any rate cut.  Currently, markets price roughly a 73% chance the Fed holds rates steady at its next meeting on July 29, but the major takeaway for investors will be how the tone of the minutes frames the Fed’s view on inflation and interest rates.   Bitcoin buyers quickly became sellers  Bitcoi

The post Fed flags AI inflation risk as rate hike odds climb above 59% appeared on BitcoinEthereumNews.com. The Federal Reserve has warned that strong artificial intelligence-related demand could keep inflation elevated, while market pricing for a U.S. interest rate hike this year has climbed above 59%. Summary Fed minutes identified AI demand, tariffs, and Middle East tensions as potential drivers of persistent inflation. Most Fed officials said higher rates may be needed if inflation stays above the 2% target. Polymarket now prices a 59% chance of a Fed rate hike this year, while July pause odds remain at 69.5%. According to the minutes of the Federal Reserve’s June Federal Open Market Committee meeting, policymakers discussed several paths for monetary policy depending on how inflation and the labor market develop. One of the scenarios considered involved inflation staying above the central bank’s 2% target despite a stable labor market, driven by strong AI-related demand, the confl