Daily Global Foreign Exchange Market Highlights (2026-01-21)

Dollar:
1. The U.S. Supreme Court tariff ruling continues to "break promises."
2. U.S. Secretary of Commerce Raimondo: We believe this quarter's GDP growth rate will exceed 5%.
3. U.S. Treasury Secretary Yellen: The earliest possible announcement of the Federal Reserve Chair candidate could be next week. Powell attending the Supreme Court's Cook hearing was a mistake.
4. Danish pension fund Akademiker Pension will exit the U.S. bond market, holding about $100 million in U.S. Treasuries as of the end of December.
5. ADP Weekly Employment Report: In the four weeks ending December 27, 2026, private sector employers added an average of 8,000 jobs per week.
6. Bank of England Governor Bailey: So far, what we see more are hedging operations against dollar positions rather than investors claiming they do not want to hold dollars.
7. U.S. Bureau of Labor Statistics: Data shows that U.S. university graduates currently account for 25.3% of all unemployed workers, the highest proportion since records began in 1992.
8. U.S. Secretary of Commerce Raimondo: Our interest rates are too high. If we cut rates by 100 basis points, you will see U.S. economic growth reach 6% or even higher.
Euro:
1. Euro implied volatility over two weeks surged to 5.95%, the highest level since early December.
2. Eurozone January ZEW Economic Sentiment Index recorded 40.8, a new high since July 2024.
3. European Central Bank Governing Council member Villeroy: Downside price risks are at least as significant as upside risks.
4. ECB Governing Council member Nègre: We are close to the price stability target.
Pound:
1. Bank of England Governor Bailey: Any threat to the Federal Reserve's independence would have significant potential spillover effects on the UK. No similar threat to the Bank of England's independence has been observed.
Yen:
1. Japanese Finance Minister Shunichi Katayama: We cannot confirm whether we will intervene in the foreign exchange market soon; FX intervention remains an option.
2. Japan’s second-largest bank, Sumitomo Mitsui Financial Group, plans to buy large amounts of Japanese government bonds.
3. Leader of Japan’s opposition party calls for a "decisive" response to bond sell-offs.
Others:
1. The Swiss franc against the yen touched the 200 level intraday for the first time.
2. Traders: The Reserve Bank of India may sell dollars to curb the rupee's depreciation.
3. Ray Dalio, founder of Bridgewater Associates: The monetary order is collapsing; fiat currencies and debt are no longer held by central banks in the same way.
4. Bank of Thailand: Eased restrictions on repatriating foreign income to ease the baht's strong movement; income below $10 million does not need to be repatriated. The baht's movement does not align with economic fundamentals.
5. South Korean President Lee Jae-myung: Regarding the Korean stock market, I still believe Korea is undervalued. #欧美关税风波冲击市场 #日本国债突现抛售风暴 #美股收盘三大股指暴跌