🌅 Morning Update | 19 December 2025 🇯🇵 Bank of Japan: The BoJ raised its short-term interest rate by 25 bps to 0.75%, the highest level since the mid-1990s. The decision was fully priced in, limiting market reaction. USD/JPY moved higher towards the 156.00 area, while JP225 gained around 0.85%. 🗣️ Governor Ueda’s comments: Speaking after the decision, BoJ Governor Kazuo Ueda underlined that real interest rates remain significantly negative and that accommodative financial conditions will continue to support economic activity. He reiterated that the central bank will raise rates further if the economy and inflation evolve in line with forecasts, while stressing the need for a cautious and gradual normalisation path. 📊 Inflation backdrop: Japan’s November core CPI held at 3.0% y/y, staying well above the BoJ’s 2% target and confirming that underlying price pressures remain persistent. The policy decision was unanimous, although policymakers acknowledged differing views on inflation dynamics. 🧠 Geopolitics & tech: The Trump administration is launching a review that could allow limited sales of Nvidia’s advanced H200 chips to China, with the US government set to receive a share of the revenue. The move marks a notable shift in the approach to export controls and is being closely watched by markets. 📈 Markets: Risk sentiment is positive. European and US index futures are trading higher (DE40 around +0.6%, US100 near +0.3%), extending the rebound seen earlier in the week. 🥇 Commodities: Gold is slightly softer as the dollar firms, while silver continues to attract buyers and resumes its upward momentum. 🪙 Crypto: bitcoin is rebounding, up around 1.5–2%, supported by improving risk appetite across global markets. Trade smarter across FX, metals, crypto and indices with NordFX 🚀