US Federal Reserve (US Fed)

The most recent inflation readings suggest the GDP deflator, a broader measure of economy-wide prices, will likely extend its drop for the seventh straight quarter, according to Bloomberg Economics.

The won (KRW) fell to an over 15-year low in December, while the rupee similarly declined to a fresh record low.

Emerging-markets struggle to get ahead of the US dollar, with JPMorgan Chase & Co’s index of EM currencies heading for a seventh successive year of losses.

The precious metal has climbed more than a quarter this year and hit record levels, supported by US monetary easing, safe-haven demand, and buying by the world’s central banks.

Rate hike bets had receded in recent weeks, contributing to a six-day losing streak in the yen through Monday, its longest stretch of declines versus the dollar since June.

Bitcoin is up roughly 50% since the US vote on Nov 5, buoyed by President-elect Donald Trump’s vow to unfetter crypto from regulatory shackles.

The S&P 500 index fell following the announcement, while US Treasury yields and the Bloomberg Dollar Index rose.

The strategists recommended that investors position for a pause by the Fed next month by paying the rate on the overnight index swap contract corresponding to the Fed’s December rate decision.

US consumer outlays, unadjusted for price changes, are forecast to climb 0.4% after a 0.5% advance the previous month.

The bank’s analysts name industrial, office and overseas REITs; ComfortDelGro and Singtel; and City Developments as some defensive plays.