This week, three central banks hold their meetings: the US Federal Reserve on Wednesday, the Bank of England on Thursday, and the Bank of Japan on Thursday and Friday. The Fed is expected to raise rates by 25 basis points to 3.75-4%, with an 86% probability according to CME FedWatch, following CPI data at 3.4% and 162,000 jobs created in August. The Bank of England is expected to hold rates at 3.75%, while the Bank of Japan anticipates a hike to 1.25%, supported by 97% of economists surveyed by Reuters. Bitcoin trades around $77,800, down from its summer highs, amid coordinated monetary tightening. This situation raises fears of a fresh unwinding of the yen carry trade, a mechanism that caused Bitcoin to fall 20% in two sessions in August 2024.
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