Market Information Wednesday 14 January 2026

U.S. banks and financial institutions are opposing President Donald Trump’s proposal to cap credit card interest rates at 10% for a year, beginning January 20. They argue the cap could lead to restricted credit access, higher fees, reduced rewards, and could harm the economy, especially impacting subprime borrowers. The proposal lacks specifics and might require congressional action. According to the Electronic Payments Coalition, most credit card accounts with credit scores below 740 would be affected. Critics, including Morningstar analyst Michael Miller, doubt the cap’s implementation, citing potential profitability issues for credit card portfolios. However, a Vanderbilt University study suggests that such a cap could save Americans $100 billion annually, despite reducing rewards for some borrowers. Vanderbilt’s Brian Shearer argues that banks’ profit margins suggest room for interest rate cuts.

Japan’s Finance Minister, Satsuki Katayama, shared concerns with U.S. Treasury Secretary Scott Bessent about the yen’s recent “one-sided depreciation,” as the yen briefly hit 158 per dollar. Japan is considering intervention to stabilize the currency, exacerbated by reports of a possible snap election in February. The election may give Prime Minister Takaichi a mandate for expansionary fiscal policy, but the weak yen increases import costs and affects household finances. Katayama emphasized the need for coordination with the U.S. if intervention is necessary. Japan argues that interventions are justified when currency moves deviate from economic fundamentals. Recent yen selling is expected to continue until the fiscal policy direction and election outcomes become clear. Japan’s last intervention occurred in July 2024 when the yen hit a 38-year low against the dollar.

Oil prices have surged to nearly $66 per barrel, the highest since late October, driven by massive protests in Iran against the regime and speculation of potential U.S. intervention. Four Greek oil tankers were hit by drones in the Black Sea, heightening concerns about supply disruptions. The oil price has risen almost 10% since last week, with traders seeking protection against price spikes via the options market. President Trump announced a 25% import tariff on countries trading with Iran, leading to speculation about further military action. Chinese refineries are major buyers of Iranian oil, raising concerns over China’s reaction to U.S. actions in the Middle East. Despite a market oversupply, disruptions in Iran and the Black Sea could lead to shortages. Iran has also threatened to block the Strait of Hormuz, a critical oil shipping route. Goldman Sachs forecasts potential price spikes but expects Brent to settle at $56 per barrel by year’s end.

The 6M Euribor increased with 1 basis point to 2.13% compared to previous business day. The 10Y Swap increased with 1 basis point to 2.86% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.