## Central Bank Decision Week Approaching, Global Financial Markets Volatile

Global markets are at a critical juncture. As the European Central Bank, Bank of England, and Bank of Japan meetings approach, asset prices are experiencing increased volatility, with US stocks and exchange rates reacting in tandem to market expectations of policy changes.

### Precious metals rally collectively, platinum breaks historical resistance

Precious metals have become the most eye-catching assets at present. Gold has risen for five consecutive days, with the latest price at $4,348 per ounce, up 1.13%. Silver also advanced, trading at $63.71 per ounce, with an increase of over 3%. Among them, platinum performed the most impressively, breaking through the $1800 per ounce mark and reaching a new high since 2008.

UBS's analysis indicates that the market's probability of a rate cut by the Federal Reserve in January is estimated to be low. This suggests that upcoming non-farm payrolls and CPI reports will be key variables in determining market direction and are the main drivers pushing up precious metals.

### US stock and exchange rate reactions to central bank expectations, Yen appreciation becomes focus

On the US stock front, futures for the three major indices generally rose on December 15. Dow Jones futures increased by 0.41%, S&P 500 futures by 0.46%, and Nasdaq 100 futures also by 0.46%. In tech stocks, NVIDIA (NVDA) rose 1.17%, Tesla (TSLA) increased by 1.23%, but robot concept stock iRobot (IRBT) suffered a heavy pre-market decline of 83.23% due to filing for bankruptcy protection.

The Yen exchange rate has become another focal point. The market widely expects the Bank of Japan to raise interest rates by 25 basis points to 0.75% on December 19, the highest level in 30 years. This expectation has already pushed the USD/JPY exchange rate below 155, with the latest at 154.93, down more than 0.50%. The Yen's appreciation reflects investors' pricing in of the Bank of Japan's hawkish stance.

### Cryptocurrency under pressure, Bitcoin faces multiple tests

The Bitcoin market is facing tests amid this round of central bank policy turbulence. As of the latest data, Bitcoin is priced at $92,630, down 1.22% in 24 hours, losing the psychological threshold of $90,000. After the Federal Reserve announced a 25 basis point rate cut, market demand quickly declined, coupled with liquidity tightening at year-end, putting noticeable pressure on Bitcoin.

More notably, the expectation of a rate hike by the Bank of Japan has a negative impact on cryptocurrencies. Analysts point out that if the Bank of Japan's policy statement contains more hawkish language, it could further amplify Bitcoin's selling pressure.

### Focus on major events of the week, central bank decisions roll out one after another

This week's economic calendar is packed. On December 16, the US non-farm payroll report will be released, followed by CPI data on December 18, both covering partial data from October and complete data from November. On the same day, the European Central Bank and Bank of England will announce their interest rate decisions. On December 19, the Bank of Japan's meeting results will be announced, which is the most closely watched event in the global markets.

This policy-intensive week is expected to set the tone for the subsequent direction of various asset prices.