South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
Dollar Rises as Middle East Conflict Fuels Inflation and Rate Hike Fears 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
European Stocks Slip as Middle East Tensions and Hormuz Threat Rattle Markets 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
Iraq PM Visits Washington as U.S. Oil, Gas Deals Take Center Stage 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
Gold Prices Fall as US-Iran Conflict, Rising Oil Prices Fuel Fed Rate Concerns 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
The U.S. dollar held onto its sharpest gain in a week on Wednesday, driven by safe-haven buying after an Iranian missile attack on Israel, heightening concerns of a wider conflict in the Middle East.
Euro, Yen, and Safe-Haven Currencies React
In early Asia trade, the euro dipped below $1.10, marking its largest drop in nearly four months. The yen and Swiss franc remained steady at 143.45 per dollar and 0.8463 per dollar, respectively, while the New Zealand dollar nursed a 1.1% overnight fall to $0.6283. Oil prices also spiked 2.5% on the news.
U.S. Dollar Index Surges Amid Tensions and Data
The U.S. dollar index jumped about 0.5% overnight to 101.2, its largest rise since September 25. The increase was partly fueled by a stronger-than-expected U.S. job openings report, adding to safe-haven demand amidst Middle East unrest.
Israeli-Iranian Tensions Drive Market Uncertainty
Israel reported more than 180 ballistic missiles fired by Iran, with Iran’s Revolutionary Guard Corps claiming the attack was in retaliation for Israeli actions against Hezbollah militants in Lebanon. No injuries were reported, but potential escalation concerns linger as Israel considers further military responses.
Oil prices are expected to fluctuate depending on Israel’s next steps, particularly if it targets Iran's military or oil assets, according to ANZ analysts.
Other Currencies and Market Reactions
The Australian dollar fell to $0.6883, though upbeat retail sales data limited losses. The British pound also saw a 0.7% drop before stabilizing at $1.3278 in early Asian trade.
New Zealand Interest Rate Outlook
A business survey in New Zealand suggested rapidly cooling price pressures, raising the likelihood of a 50-basis point rate cut next week. Westpac and BNZ have revised their forecasts to reflect this expectation, with markets pricing in a 77% probability.
U.S. Domestic Developments
Traders are also monitoring the ongoing dockworkers' strike on the U.S. East and Gulf coasts, which has halted about half of the country's ocean shipping. Additionally, a vice-presidential debate between Democrat Tim Walz and Republican JD Vance is scheduled for later in the day, along with anticipated U.S. private payroll data.
