Asia FX tepid ahead of US inflation; BOJ rate hike looms

The Irish Central Bank has raised its growth forecasts, indicating that the economy is showing resilience against headwinds from the US economic landscape. This adjustment reflects a positive outlook amid global uncertainties, particularly those stemming from the US market.

The U.S. is considering the reclassification of marijuana, which could significantly impact the cannabis industry. This potential change aims to align federal regulations with the evolving public perception and state-level legalization efforts surrounding cannabis use and sales.

Japan's consumer inflation remained above the central bank's 2% target in November, reinforcing expectations for an interest rate hike by the Bank of Japan (BOJ) later this week. This persistent inflation reflects ongoing economic pressures that have been evident in recent months.

Japan's core inflation remained steady in November, continuing to exceed the Bank of Japan's (BOJ) target. This stability in inflation rates reflects ongoing economic pressures that have persisted in recent months.

Former President Donald Trump has signed an executive order aimed at easing federal regulations on marijuana, a move that has generated optimism within the cannabis industry. This decision is seen as a significant shift in the regulatory landscape, potentially leading to increased investment and growth opportunities in the sector.

Japan's Consumer Price Index (CPI) inflation remained persistent in November, indicating ongoing economic pressures as the Bank of Japan (BOJ) prepares for a potential interest rate hike. Recent data shows that core inflation continues to exceed the BOJ's target, raising concerns about the effectiveness of current monetary policies.

Gold and silver prices are hovering near record highs, buoyed by slower-than-expected inflation data from the US, which has reinforced expectations for further interest rate cuts by the Federal Reserve. Platinum is also approaching a 17-year peak, indicating strong demand across precious metals.

Asian equities experienced gains following the release of US inflation data, which indicated a cooling trend, thereby strengthening the case for potential interest-rate cuts by the Federal Reserve. This positive sentiment also contributed to a rise in American stocks, alleviating previous concerns in the tech sector.