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17 Feb 2026, 02:30

Japanese Yen Gains Cautiously Against USD Amid Stark BoJ-Fed Policy Divergence

BitcoinWorld Japanese Yen Gains Cautiously Against USD Amid Stark BoJ-Fed Policy Divergence TOKYO, March 2025 – The Japanese Yen has edged higher against the US Dollar in recent trading sessions, marking a subtle but notable shift in currency dynamics driven by widening policy divergence between the Bank of Japan and Federal Reserve. However, market participants remain cautious about the sustainability of this movement, as fundamental economic factors continue to exert opposing pressures on both currencies. Japanese Yen USD Movement Reflects Central Bank Policy Divergence The Japanese Yen has appreciated approximately 1.8% against the US Dollar over the past month, according to data from the Tokyo Financial Exchange. This movement represents a significant development in forex markets, particularly given the sustained strength of the US Dollar throughout much of 2024. Market analysts attribute this shift primarily to changing expectations surrounding monetary policy trajectories in both Japan and the United States. Recent statements from Bank of Japan officials have hinted at potential policy normalization, while Federal Reserve communications suggest a more cautious approach to rate cuts than previously anticipated. Consequently, the yield differential between Japanese and US government bonds has narrowed slightly, reducing one of the key drivers of Yen weakness over the past two years. Market data shows that the USD/JPY pair has retreated from recent highs near 152 to trade around 149.50 as of this week’s close. Bank of Japan Monetary Policy Evolution The Bank of Japan has maintained ultra-accommodative monetary policy for nearly a decade, implementing several unconventional measures including: Negative Interest Rate Policy: -0.1% on excess reserves since 2016 Yield Curve Control: Targeting 10-year government bond yields around 0% Quantitative and Qualitative Easing: Massive asset purchase program However, recent economic developments have prompted reconsideration of this approach. Japan’s core inflation has remained above the BoJ’s 2% target for 24 consecutive months, according to Statistics Bureau of Japan data. Additionally, wage growth in the 2025 Shunto spring wage negotiations reached 3.8%, the highest level in three decades. These factors have increased pressure on the central bank to normalize policy, potentially through gradual interest rate increases or adjustments to yield curve control parameters. Federal Reserve Policy Trajectory Analysis Meanwhile, the Federal Reserve has maintained a relatively hawkish stance compared to other major central banks. Despite market expectations for rate cuts in early 2025, recent economic data has complicated the policy outlook. The US economy added 275,000 jobs in February 2025, exceeding analyst expectations, while core PCE inflation remained at 2.8% year-over-year. Federal Reserve Chair Jerome Powell emphasized in recent congressional testimony that the central bank needs “greater confidence” that inflation is moving sustainably toward the 2% target before considering rate reductions. This policy stance has supported the US Dollar through several mechanisms: Factor Impact on USD Current Status Interest Rate Differential Positive Remains substantial Economic Growth Outlook Positive US outperforming peers Safe-Haven Demand Mixed Elevated during uncertainty Forex Market Technical Analysis and Positioning Technical analysis reveals important patterns in the USD/JPY pair. The currency pair recently failed to break above the key psychological resistance level of 152, which has acted as a barrier on multiple occasions over the past year. This failure triggered profit-taking among long USD positions, contributing to the Yen’s recent strength. According to Commodity Futures Trading Commission data, speculative net long positions on the US Dollar against the Yen decreased by 12% in the latest reporting period. Market participants cite several factors limiting more substantial Yen appreciation: Carry Trade Dynamics: Interest rate differentials still favor borrowing Yen to invest in higher-yielding assets Japanese Investor Behavior: Continued foreign bond purchases by Japanese institutional investors Energy Import Costs: Japan’s substantial energy imports require consistent USD purchasing Government Intervention Concerns: Memories of 2022 Ministry of Finance interventions at 145-146 levels Global Economic Context and Currency Implications The broader global economic environment significantly influences the Yen-Dollar relationship. China’s economic recovery pace, European Central Bank policy decisions, and geopolitical developments all contribute to currency market volatility. Notably, the Yen has traditionally served as a barometer for global risk sentiment, often appreciating during periods of market stress despite Japan’s negative interest rates. Recent developments in global bond markets have particularly impacted currency valuations. US Treasury yields have retreated from their 2024 peaks but remain substantially above Japanese Government Bond yields. The 10-year spread between US and Japanese bonds currently stands at approximately 320 basis points, down from 400 basis points in late 2024 but still historically wide. This spread continues to provide fundamental support for the USD/JPY pair, limiting the Yen’s appreciation potential. Historical Policy Divergence Patterns and Current Parallels Historical analysis reveals that periods of BoJ-Fed policy divergence typically produce significant currency movements. The 2012-2015 period, when the Fed began tightening while the BoJ expanded stimulus, saw USD/JPY rise from 78 to 125. Current conditions differ substantially, however, as both central banks face more complex economic environments. Inflation dynamics, debt levels, and demographic challenges create unique constraints for policymakers in both countries. Market participants should consider several key dates and events that could influence future currency movements: April 2025: Bank of Japan quarterly outlook report and potential policy adjustments May 2025: Federal Reserve meeting with updated economic projections June 2025: G7 finance ministers meeting addressing currency volatility concerns July 2025: Japanese upper house elections potentially affecting economic policy Conclusion The Japanese Yen has demonstrated modest strength against the US Dollar amid evolving expectations for Bank of Japan and Federal Reserve monetary policies. However, this movement lacks strong bullish conviction due to persistent fundamental factors including interest rate differentials, energy import requirements, and global risk sentiment. Market participants should monitor upcoming central bank communications, economic data releases, and technical levels to gauge the sustainability of current trends. The USD/JPY relationship will likely remain sensitive to policy divergence between the two central banks throughout 2025, with potential volatility around key decision points and data releases. FAQs Q1: What is causing the Japanese Yen to strengthen against the US Dollar? The Yen’s recent strength primarily stems from changing expectations about monetary policy divergence between the Bank of Japan and Federal Reserve, with markets anticipating potential BoJ policy normalization and a more cautious Fed approach to rate cuts. Q2: How significant is the current policy divergence between the BoJ and Fed? The divergence remains substantial, with the Fed maintaining rates at restrictive levels while the BoJ continues ultra-accommodative policies, though expectations for future moves have shifted recently, narrowing the perceived gap in policy trajectories. Q3: What factors are limiting more substantial Yen appreciation? Several factors constrain Yen strength, including continued interest rate differentials favoring the Dollar, Japan’s structural need to import energy (requiring Dollar purchases), and memories of past government interventions to prevent excessive Yen strength. Q4: How does inflation in Japan and the US affect their currencies? Higher US inflation supports Dollar strength by reducing expectations for Fed rate cuts, while sustained Japanese inflation above the 2% target increases pressure on the BoJ to normalize policy, potentially supporting Yen strength over time. Q5: What technical levels are important for USD/JPY traders to watch? Traders monitor several key levels, including psychological barriers at 150 and 152 on the upside, and support around 147 and 145 on the downside, with the latter being levels where Japanese authorities previously intervened in 2022. This post Japanese Yen Gains Cautiously Against USD Amid Stark BoJ-Fed Policy Divergence first appeared on BitcoinWorld .

17 Feb 2026, 02:25

Gold Price Decline: Unsettling Holiday Lull in Chinese Trading Volumes Rattles Global Markets

BitcoinWorld Gold Price Decline: Unsettling Holiday Lull in Chinese Trading Volumes Rattles Global Markets Global gold markets experienced a noticeable decline in early 2025 as trading volumes remained subdued during extended holiday periods in China, the world’s largest gold consumer, creating ripple effects across international commodity exchanges from London to New York. Gold Price Decline During Chinese Holiday Season The precious metal market recorded a significant downturn this week, with spot gold prices falling approximately 2.3% amid reduced trading activity. Market analysts attribute this movement primarily to diminished participation from Chinese investors during their traditional holiday celebrations. Consequently, trading volumes dropped by nearly 40% compared to typical weekly averages, according to data from the Shanghai Gold Exchange. Chinese markets traditionally experience reduced activity during major holidays, including the Lunar New Year and National Day celebrations. This year, however, the effect appears more pronounced due to extended regional closures across multiple provinces. Major financial centers like Shanghai and Hong Kong reported minimal trading activity, creating a liquidity vacuum that affected global price discovery mechanisms. Global Commodity Market Impacts The reduced Chinese participation created several observable effects across international markets. First, London Bullion Market Association (LBMA) data shows afternoon gold fixings experienced wider bid-ask spreads. Second, COMEX gold futures in New York showed decreased open interest. Third, physical gold premiums in Asian hubs like Singapore and Dubai moderated slightly. Historical analysis reveals this pattern consistently emerges during Chinese holiday periods. For instance, during the 2024 Lunar New Year, gold trading volumes decreased by 35% with similar price declines. The table below illustrates recent holiday period impacts: Period Volume Decline Price Change Duration 2025 Current Holiday 38-42% -2.3% 5 trading days 2024 Lunar New Year 35% -1.8% 4 trading days 2023 National Day 31% -1.2% 3 trading days Market technicians note that reduced participation often amplifies price movements from other global factors. Currently, traders monitor several concurrent developments: Federal Reserve policy signals regarding interest rate trajectories US dollar strength against major currencies Geopolitical developments in Eastern Europe and the Middle East Central bank gold purchases from emerging market nations Expert Analysis of Market Dynamics Dr. Evelyn Chen, Senior Commodities Analyst at the Asian Financial Research Institute, explains the underlying mechanics. “Chinese market participation represents approximately 30% of global gold trading volume during normal periods,” she notes. “When this substantial segment withdraws temporarily, market depth decreases significantly. Consequently, price movements become more susceptible to automated trading algorithms and institutional rebalancing.” Furthermore, Chen emphasizes that physical gold markets demonstrate particular sensitivity. “China accounts for roughly 25% of global gold consumption annually,” she continues. “During holiday periods, jewelry manufacturing slows, refinery operations reduce output, and retail purchases typically decline. This creates a temporary supply-demand imbalance that affects spot prices.” Market data supports this analysis. The World Gold Council’s 2024 report indicates Chinese gold demand patterns show consistent seasonal variations. Specifically, first-quarter demand typically represents 28-32% of annual totals, with significant concentration around holiday periods. This cyclical pattern creates predictable volatility that sophisticated traders often anticipate. Historical Context and Comparative Analysis Examining previous holiday periods reveals consistent patterns in precious metals behavior. During the 2020 Lunar New Year, for example, gold prices declined 2.1% amid similar volume reductions. However, that period coincided with emerging pandemic concerns, creating compounded effects. By contrast, the 2022 holiday period saw only modest declines as inflation concerns provided counterbalancing support. Comparative analysis with other commodities shows varying sensitivity to Chinese market participation. Copper typically experiences more pronounced effects due to China’s dominant position in industrial metals consumption. Conversely, agricultural commodities like wheat show less direct correlation. Precious metals occupy an intermediate position, influenced by both industrial and investment demand factors. Several structural factors amplify gold’s sensitivity to Chinese market conditions: Time zone alignment with Asian trading sessions Cultural significance of gold in Chinese tradition Regulatory frameworks governing gold imports and exports Retail investment patterns through gold accumulation plans Technical Market Indicators and Signals Trading platforms reported several technical developments during the holiday period. First, the gold-to-silver ratio widened slightly as silver showed greater resilience. Second, gold volatility indices declined despite price movements, suggesting reduced conviction behind the moves. Third, options market data indicated decreased hedging activity from Asian institutions. Chart analysis reveals specific technical patterns. The 50-day moving average provided initial resistance around $2,150 per ounce. Meanwhile, trading volume indicators confirmed the subdued activity across all major exchanges. Relative strength indices approached oversold territory but didn’t trigger significant buy signals due to the artificial volume conditions. Market participants generally anticipate normalization following holiday conclusions. Historical data suggests approximately 70% of volume typically returns within three trading days after holidays conclude. Price recovery patterns vary depending on concurrent fundamental developments in currency markets and interest rate expectations. Broader Financial Market Implications The gold market developments occurred alongside other financial market movements. US Treasury yields showed modest increases, creating additional headwinds for non-yielding assets like gold. Equity markets demonstrated mixed performance, with mining stocks underperforming broader indices due to the precious metals weakness. Currency markets displayed related dynamics. The US dollar index strengthened slightly against major counterparts, applying traditional pressure on dollar-denominated commodities. Emerging market currencies with gold export dependencies, including the South African rand and Peruvian sol, showed modest weakness in sympathy with gold’s decline. Central bank activity provided an important contextual factor. According to International Monetary Fund data, global central banks added approximately 800 metric tons to gold reserves during 2024. This institutional demand typically provides underlying support during periods of retail investor weakness. However, central bank operations generally continue during holiday periods, creating a stabilizing influence. Conclusion The recent gold price decline during Chinese holiday periods illustrates the interconnected nature of global commodity markets. Reduced trading volumes from the world’s largest gold consumer created temporary price distortions and decreased market liquidity. While historical patterns suggest normalization typically follows holiday conclusions, current movements highlight gold’s sensitivity to regional participation patterns. Market participants will monitor volume recovery and price action as Chinese traders return, while considering broader fundamental factors including monetary policy trajectories and geopolitical developments that continue influencing long-term gold valuation. FAQs Q1: Why do Chinese holidays specifically affect gold prices more than other markets? A1: China represents approximately 30% of global gold trading volume and 25% of annual consumption. The concentration of market participation creates disproportionate effects when Chinese traders are absent, particularly given time zone alignments with Asian trading sessions. Q2: How long do these holiday-related effects typically last? A2: Historical data indicates most volume returns within three trading days after holidays conclude. Price effects may persist slightly longer depending on concurrent market developments, but typically normalize within one to two weeks. Q3: Do other precious metals show similar patterns during Chinese holidays? A3: Silver and platinum demonstrate related but less pronounced effects. Silver maintains stronger industrial demand components, while platinum has different geographical consumption patterns. Gold shows the clearest correlation due to its cultural significance and investment profile in Chinese markets. Q4: How do professional traders typically navigate these holiday periods? A4: Institutional traders often reduce position sizes, widen stop-loss orders, and increase focus on technical indicators less dependent on volume. Many also monitor currency markets and interest rate developments more closely during low-volume periods. Q5: Has digital gold trading changed these holiday patterns in recent years? A5: Digital platforms have somewhat mitigated but not eliminated the effects. While some trading continues electronically, the majority of market-making and liquidity provision still relies on human traders who observe traditional holiday schedules, particularly in physical gold markets. This post Gold Price Decline: Unsettling Holiday Lull in Chinese Trading Volumes Rattles Global Markets first appeared on BitcoinWorld .

17 Feb 2026, 02:10

GBP/USD Braces for Impact: Pound Sterling’s Critical Test Looms Ahead of UK Jobs Data

BitcoinWorld GBP/USD Braces for Impact: Pound Sterling’s Critical Test Looms Ahead of UK Jobs Data LONDON, UK – The Pound Sterling opens the trading week under palpable pressure, with the GBP/USD currency pair fixated on the 1.3600 support level as market participants globally await a pivotal release of UK labour market statistics. This negative bias reflects a complex interplay of domestic economic signals and shifting global risk sentiment, setting the stage for a potentially volatile session. Consequently, traders are scrutinizing every data point for clues about the Bank of England’s next policy move, which remains the primary driver for Sterling valuation in the current macroeconomic environment. GBP/USD Technical Outlook and Immediate Market Pressures The GBP/USD pair’s descent toward the 1.3600 handle is not an isolated event. Instead, it represents a culmination of several technical and fundamental factors. On the charts, the pair has breached several short-term moving averages, signaling a shift in momentum. Furthermore, analysts note that a sustained break below 1.3600 could open the path toward the 1.3500 psychological zone, a level not tested in several weeks. Meanwhile, the US Dollar has found broad-based strength amid renewed market caution, compounding the downward pressure on the cable pair. Market sentiment toward the Pound remains fragile. Recent economic indicators from the UK have presented a mixed picture, fostering uncertainty. For instance, while business activity surveys showed modest improvement, concerns about persistent inflationary pressures in the services sector linger. This data dichotomy creates a challenging landscape for the Bank of England’s Monetary Policy Committee. Therefore, the upcoming jobs report is seen as a critical piece of the puzzle, offering direct insight into wage growth trends—a key variable in the inflation equation. Decoding the Upcoming UK Jobs Data: What Markets Are Watching The UK’s labour market data, scheduled for release by the Office for National Statistics (ONS), carries exceptional weight. The report will provide three crucial metrics: the Unemployment Rate, Employment Change, and most importantly, Average Earnings growth. Specifically, markets will dissect the Average Earnings Index excluding bonuses. Strong wage growth, particularly above current inflation forecasts, could reinforce expectations for a more hawkish Bank of England stance. Conversely, signs of cooling in the labour market might suggest inflationary pressures are easing, potentially delaying further rate hikes. Historical context is essential here. The UK labour market has remained surprisingly resilient despite broader economic headwinds. However, recent months have shown tentative signs of softening. The following table summarizes key consensus forecasts and prior figures for the main data points: Metric Prior Reading Consensus Forecast Unemployment Rate (ILO) 4.2% 4.3% Average Earnings ex-Bonus (3M/YoY) 6.1% 5.9% Employment Change (3M/3M) +108k +85k Market reaction will likely hinge on deviations from these forecasts. A significant beat on wage growth could trigger a swift, albeit potentially short-lived, Sterling rally as traders price in higher terminal rate expectations. On the other hand, a miss across multiple metrics may validate the current negative bias, accelerating the sell-off toward lower support levels. Expert Analysis: The Broader Macroeconomic Canvas Beyond the immediate data, currency analysts emphasize the importance of the global context. The relative policy trajectory between the Bank of England and the Federal Reserve remains a dominant theme. Recently, stronger-than-expected US economic data has led markets to pare back expectations for aggressive Fed rate cuts in 2025, providing underlying support for the US Dollar. This dynamic inherently pressures GBP/USD. Additionally, geopolitical tensions and fluctuations in global energy prices continue to influence risk-sensitive currencies like the Pound. The path for Sterling is therefore not determined by a single dataset. A holistic view incorporating inflation trends, consumer spending data, and global capital flows is necessary. For example, the UK’s current account deficit still poses a structural vulnerability for the currency during periods of risk aversion. Ultimately, the jobs data will act as a catalyst, but the medium-term trend will depend on a confluence of subsequent economic releases and central bank communications. Strategic Implications for Traders and Investors For participants in the foreign exchange market, the pre-data environment demands heightened risk management. The implied volatility for GBP pairs tends to spike around major data releases, increasing the cost of options and the potential for rapid price swings. Seasoned traders often adopt one of several strategies: Reducing Exposure: Many trim large directional positions ahead of the event to avoid unpredictable volatility. Implementing Straddles: Options strategies that profit from a significant move in either direction can be employed. Awaking the Breakout: Setting orders above and below key technical levels (like 1.3700 and 1.3600) to capture a momentum-driven move post-release. For long-term investors and corporations with GBP exposure, the focus shifts to hedging strategies. The outcome of the data may inform decisions on currency hedging ratios for international portfolios or timing for cross-border currency conversions. A weaker Pound, while a headwind for import costs, can boost the overseas earnings of FTSE 100 multinationals when converted back to Sterling. Conclusion The GBP/USD pair stands at a critical technical juncture, with the 1.3600 level serving as a litmus test for near-term sentiment. The impending UK jobs data release represents a high-impact event that will provide crucial evidence on the health of the domestic economy and the likely path of monetary policy. While the current bias for Pound Sterling is negative, the data has the potential to swiftly recalibrate market expectations. Traders and analysts alike must navigate this environment with a focus on verifiable data, clear technical levels, and an understanding of the broader macroeconomic forces shaping the currency markets. The reaction to this report will offer significant clues about the resilience of the UK economy and the future trajectory of the GBP/USD exchange rate. FAQs Q1: Why is the UK jobs data so important for the Pound Sterling? The data provides direct insight into wage growth, which is a primary driver of domestic inflation. The Bank of England uses this information to decide on interest rate policy, and higher rates typically attract foreign investment, supporting the currency. Q2: What is a “negative bias” in currency trading? A negative bias means the overall market sentiment and prevailing price action suggest a higher probability of the currency’s value decreasing in the near term, leading to more selling pressure than buying interest. Q3: What other factors influence GBP/USD besides UK data? The pair is heavily influenced by US economic data and Federal Reserve policy, global risk sentiment, geopolitical events, and differentials in economic growth and interest rates between the UK and the US. Q4: What happens if GBP/USD breaks below 1.3600? A sustained break below this key psychological and technical support level could trigger further automated selling, potentially pushing the pair toward the next major support zone around 1.3500, depending on the momentum and volume of the move. Q5: How quickly do markets react to the jobs data release? Reaction in the forex market is virtually instantaneous, often occurring within the first few seconds and minutes after the data is published. High-frequency trading algorithms execute orders based on the numbers immediately. This post GBP/USD Braces for Impact: Pound Sterling’s Critical Test Looms Ahead of UK Jobs Data first appeared on BitcoinWorld .

17 Feb 2026, 00:15

Malaysia Economic Growth Faces Crucial Moderation as BNM Holds Steady on Rates

BitcoinWorld Malaysia Economic Growth Faces Crucial Moderation as BNM Holds Steady on Rates KUALA LUMPUR, Malaysia – March 2025: Malaysia’s economic trajectory enters a critical phase of measured moderation as Bank Negara Malaysia maintains its benchmark interest rate at 3.00%. This pivotal decision comes amid evolving global financial conditions and domestic inflationary pressures that signal a deliberate shift toward sustainable growth patterns. Consequently, analysts project a calibrated slowdown from previous expansion rates, reflecting both external headwinds and intentional policy restraint. Malaysia Economic Growth Enters Deliberate Moderation Phase Recent economic indicators reveal Malaysia’s growth momentum is undergoing intentional moderation. The nation’s Gross Domestic Product expanded by 4.2% in the fourth quarter of 2024, according to Department of Statistics Malaysia data. This represents a measured deceleration from the 5.6% growth recorded in the previous quarter. Furthermore, manufacturing output showed a 3.8% year-on-year increase, while services sector growth stabilized at 4.5%. These figures collectively demonstrate a controlled economic cooling rather than abrupt contraction. Several structural factors contribute to this moderated growth trajectory. First, export performance has softened amid global demand adjustments. Second, domestic consumption patterns show cautious optimism rather than exuberant expansion. Third, investment flows maintain steady momentum without the volatility seen in previous cycles. The central bank’s monetary policy stance actively supports this balanced approach, prioritizing stability over aggressive stimulation. Bank Negara Malaysia’s Steadfast Monetary Policy Stance Bank Negara Malaysia’s Monetary Policy Committee maintained the Overnight Policy Rate at 3.00% during its March 2025 meeting. This decision marks the fourth consecutive hold since November 2024, establishing a clear pattern of policy consistency. The central bank’s statement emphasized that “current monetary policy settings remain supportive of the economy” while acknowledging “balanced risks to growth and inflation outlook.” Historical context illuminates this policy trajectory. BNM raised rates by 125 basis points between May 2022 and May 2023 to address post-pandemic inflationary pressures. Since November 2023, however, the bank has adopted a watchful stance, allowing previous tightening measures to work through the economy. This patient approach reflects confidence in existing policy transmission mechanisms and recognition of global monetary policy synchronization challenges. Inflation Dynamics and Policy Response Malaysia’s inflation landscape presents nuanced challenges for policymakers. Headline inflation registered 2.1% year-on-year in February 2025, remaining within the central bank’s target range of 2-3%. Core inflation, excluding volatile food and energy prices, stood at 1.8%. These figures suggest contained price pressures but mask underlying sectoral variations. Food inflation continues to present persistent challenges at 3.2%, while transportation costs increased by 2.4%. Housing and utilities inflation moderated to 1.9%, reflecting government subsidy adjustments. The central bank monitors these components carefully, recognizing that sustained food and energy price pressures could necessitate policy reassessment. Meanwhile, services inflation remains contained at 2.0%, indicating limited second-round effects from earlier commodity price shocks. Global Economic Context and Malaysian Resilience Malaysia’s economic moderation occurs within a complex global environment. The United States Federal Reserve maintains restrictive monetary policy, while the European Central Bank continues its gradual normalization path. China’s economic rebalancing affects regional trade patterns, and commodity price volatility persists amid geopolitical tensions. These external factors inevitably influence Malaysia’s growth prospects through trade, investment, and financial channels. Despite these challenges, Malaysia demonstrates notable economic resilience. The nation’s current account surplus reached RM16.2 billion in the fourth quarter of 2024, supported by sustained manufacturing exports and recovering tourism receipts. Foreign exchange reserves stand at US$114.5 billion, providing substantial policy buffers. Additionally, banking system liquidity remains ample with loan-to-deposit ratios at 86%, supporting continued credit expansion to productive sectors. Sectoral Performance and Growth Drivers Malaysia’s economic moderation manifests differently across sectors. The electrical and electronics industry maintains robust performance with 6.2% growth, benefiting from global technology demand. Palm oil and rubber production show mixed results amid weather variations and price fluctuations. Meanwhile, the tourism sector demonstrates strong recovery with arrival numbers reaching 85% of pre-pandemic levels. Investment patterns reveal strategic reallocation. Private investment grew by 5.8% in 2024, concentrated in technology infrastructure and renewable energy projects. Public investment increased by 4.2%, focusing on transportation networks and digital connectivity. These investments support medium-term growth capacity despite current moderation. The services sector continues its expansion, particularly in digital services and healthcare, contributing to employment stability. Labor Market Stability Amid Economic Adjustment Malaysia’s labor market demonstrates remarkable stability during this growth moderation period. The unemployment rate declined to 3.2% in January 2025, approaching pre-pandemic levels. Labor force participation reached 70.1%, with particular strength in female workforce engagement at 56.3%. Wage growth moderated to 3.5% annually, aligning with productivity improvements rather than inflationary pressures. Several factors support labor market resilience. First, diversified economic structure prevents concentrated employment shocks. Second, active labor market policies facilitate skills transition. Third, foreign worker management balances domestic employment with sectoral needs. This stability provides crucial social foundation for economic adjustment, preventing the growth moderation from translating into significant household distress. Financial System Strength and Credit Conditions Malaysia’s financial system maintains robust health amid economic moderation. Banking sector capital adequacy ratios stand at 18.2%, well above regulatory requirements. Non-performing loans remain contained at 1.6% of total financing, reflecting prudent risk management. Liquidity coverage ratios exceed 140%, ensuring system resilience against potential shocks. Credit conditions continue supporting economic activity. Business loan growth registered 5.2% year-on-year in January 2025, with particular strength in manufacturing and services sectors. Household credit expansion moderated to 4.8%, reflecting more cautious consumption patterns. These credit dynamics suggest financial intermediation continues functioning effectively, transmitting monetary policy while maintaining stability standards. Regional Comparisons and Competitive Positioning Malaysia’s growth moderation pattern aligns with regional trends while maintaining competitive advantages. Southeast Asian neighbors exhibit similar adjustments, with Thailand growing at 3.8%, Indonesia at 5.0%, and Vietnam at 5.5% in late 2024. These variations reflect different economic structures, policy approaches, and external exposures. Malaysia maintains several competitive strengths. The nation ranks 27th in the World Bank’s Ease of Doing Business Index, leading ASEAN in several categories. Digital infrastructure development progresses steadily, with 5G coverage reaching 80% of populated areas. Additionally, manufacturing sophistication continues advancing, particularly in semiconductor packaging and medical device production. These advantages position Malaysia for sustainable medium-term growth despite current moderation. Policy Coordination and Economic Management Effective policy coordination supports Malaysia’s growth adjustment. Fiscal policy maintains moderate expansion with a projected deficit of 4.0% of GDP in 2025. This stance balances support for vulnerable groups with medium-term consolidation objectives. Structural reforms continue advancing, particularly in subsidy rationalization and public service delivery. Monetary-fiscal coordination remains crucial during this period. The central bank’s steady policy stance complements fiscal measures, preventing conflicting signals. Regulatory authorities maintain vigilant supervision, addressing potential financial stability concerns proactively. This coordinated approach enhances policy effectiveness while maintaining investor confidence during economic transitions. Conclusion Malaysia’s economic growth enters a deliberate moderation phase as Bank Negara Malaysia maintains steady monetary policy. This adjustment reflects both global conditions and domestic policy choices, prioritizing stability and sustainability over short-term stimulation. The nation’s fundamental strengths – diversified economy, robust financial system, and policy credibility – provide solid foundation for navigating this transition. Consequently, while growth rates moderate from previous highs, Malaysia’s economic trajectory remains positioned for resilient, inclusive expansion in the medium term. The central bank’s patient, data-dependent approach continues serving the nation well, balancing inflation management with growth support as economic conditions evolve. FAQs Q1: Why is Bank Negara Malaysia keeping interest rates steady? Bank Negara Malaysia maintains rates to balance inflation control with growth support. Current policy settings adequately address economic conditions while previous tightening measures continue working through the system. The central bank monitors data closely for any need to adjust this stance. Q2: How does Malaysia’s growth moderation compare with regional economies? Malaysia’s growth pattern aligns with broader Southeast Asian trends. The nation’s 4.2% expansion compares with Thailand’s 3.8%, Indonesia’s 5.0%, and Vietnam’s 5.5%. These variations reflect different economic structures and policy approaches across the region. Q3: What sectors are driving Malaysia’s economic performance? Electrical and electronics manufacturing leads with 6.2% growth, followed by services at 4.5%. Tourism recovery continues strongly, while commodities show mixed performance. Digital services and renewable energy investments provide additional momentum. Q4: How is inflation affecting monetary policy decisions? Inflation remains within the central bank’s 2-3% target range at 2.1%. However, food inflation at 3.2% presents ongoing concerns. BNM monitors these pressures carefully, recognizing that sustained increases could necessitate policy adjustment despite current stability. Q5: What are the main risks to Malaysia’s economic outlook? Key risks include global growth slowdown affecting exports, commodity price volatility, and geopolitical tensions disrupting trade. Domestic challenges include subsidy reform implementation and ensuring inclusive growth. The central bank addresses these through vigilant monitoring and policy flexibility. This post Malaysia Economic Growth Faces Crucial Moderation as BNM Holds Steady on Rates first appeared on BitcoinWorld .

16 Feb 2026, 23:15

Gold Forecast: Researchers See Prices Hovering Near $5,000 in Q1 2026

Gold is expected to trade around current prices through the first quarter, according to Sucden Financial market strategists, even as prices pulled back modestly on Feb. 16 amid thin holiday liquidity and profit-taking. Gold Prices Cool but Analysts Maintain $5,000 Q1 View In its Q1 2026 Quarterly Metals Report, Sucden Financial’s Head of Research Daria

16 Feb 2026, 23:12

Steak 'n Shake sales jump after accepting bitcoin payments

Steak ‘n Shake says its sales have climbed sharply since it started letting customers pay with Bitcoi n ni ne months ago, marking one of the most aggressive cryptocurrency pushes in the fast-food industry. The national burger restaurant announced the sales increase on Tuesday, saying its decision to accept digital currency payments has paid off. The company started taking Bitcoin in May 2025 and now holds about $15 million worth of the cryptocurrency in what it calls a Strategic Bitcoin Reserve. “Our same-store sales have risen dramatically ever since,” the company said in a statement marking the nine-month anniversary of its Bitcoin program launch. The chain, which operates hundreds of locations across the United States and several European countries including France, Italy, Portugal, and Monaco, reported saving almost half its usual transaction costs within just two weeks of accepting Bitcoin. That’s compared to traditional credit card processing fees that typically eat into restaurant profits. Industry-first Bitcoin reserve established By the end of October 2025, Steak ‘n Shake became the first big U.S. restaurant chain to set up a dedicated Bitcoin reserve. The company said it saw a 15 percent jump in sales at existing stores thanks to cryptocurrency-friendly customers. The restaurant accepts Bitcoin through something called the Lightning Network, which lets transactions happen faster and cheaper. Block co-founder Jack Dorsey backed the move when i t la unched. All Bitcoin payment s cu stomers make for burgers and shakes go straight into the company’s reserve fund. That mone y th en gets used to pay employee bonuses in Bitcoin, creating what the company calls a “decentralized, cash-producing operating business.” Steak ‘n Shake has kept adding to its cryptocurrency stash. After an initial $10 million position, the chain bought another $10 million worth on January 16 and $5 million more on January 27. That bring s to tal holdings to roughly 168.6 Bitcoin. The company ran promotions like the “Bitcoin Burger” that gave customers small amounts of Bitcoin when they bought certain menu items. For every “Bitcoin Meal” sold, the chain donated 210 satoshis, tiny fractions of a Bitcoin, to support open-source Bitcoin software development. Employee bonuses draw mixed reactions In late January, Steak ‘n Shake announce d it would give hourly workers at company-owned stores a Bitcoin bonus worth 21 cents per hour starting March 1. But the offer drew complaints because employees can’t touch the money for two years, and franchise workers don’t get it at all. The restaurant’s owner, Biglari Holdings, hasn’t said whether Bitcoin will become part of its overall corporate money strategy. That suggest s th e cryptocurrency push is specific to the Steak ‘n Shake brand rather than a company-wide financial plan. Sales numbers back up the strategy so far. The chain reported 18 percent growth at existing stores in 2026 and “double digits” growth last year, beating most competitors. Steak ‘n Shake plans to open locations in El Salvador , where Bitcoin i s le gal money. The company attended Bitcoin events in San Salvador last November and announced expansion plans shortly after. The chain briefly asked customers if it should accept Ethereum, another cryptocurrency, but quickly pulled the survey afte r an gry responses. “Our allegiance is with Bitcoiners,” the company said. The transaction fee savings alone could justify the move, restaurants operate on thin profit margins where every percentage point counts. The strategy works because it creates a loop. Bitcoin payments fund employee bonuses, which might attract tech-savvy workers, which improves service, which brings in more customers willing to pay with Bitcoin. It’s a bet that cryptocurrency users will become loyal customers if given reasons to keep coming back. Join a premium crypto trading community free for 30 days - normally $100/mo.