Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
Asian currencies traded mostly flat on Wednesday as investors remained risk-averse amid the ongoing Israel-Iran war and uncertainty ahead of the U.S. Federal Reserve’s policy decision. The dollar edged slightly lower, pressured by weak U.S. economic data, while traders anticipated dovish signals from the Fed.
The South Korean won and Taiwan dollar were notable outperformers. The USD/KRW dropped 0.6%, nearing an eight-month low, while the USD/TWD fell 0.4%. The Chinese yuan (USD/CNY) and Singapore dollar (USD/SGD) held steady, while the Australian dollar (AUD/USD) rose 0.2%. India’s rupee (USD/INR) also remained flat.
Market sentiment was also clouded by concerns over U.S. trade policy, with a July deadline approaching for President Donald Trump’s planned tariffs. Japan, in particular, faced headwinds. Prime Minister Shigeru Ishiba said no trade deal was reached with the U.S. during the G7 summit, and Japan’s May trade data showed exports shrinking for the first time in eight months. Analysts now expect Japanese exports to weaken further due to tariff pressures and slowing global demand. A sharper decline in imports also raised concerns about soft domestic consumption.
Meanwhile, the yen (USD/JPY) slipped 0.1%, showing limited reaction to the Bank of Japan's decision to hold interest rates steady and signal slower bond tapering into 2026 — a dovish stance.
The U.S. dollar index fell 0.1% in Asia after disappointing U.S. retail sales and industrial production data raised fears of economic slowdown. Markets widely expect the Fed to keep rates unchanged at 0.5% but are closely watching Fed Chair Jerome Powell’s projections for rate cuts. Powell has hinted at a slower pace of easing in 2025, following cumulative rate cuts of 1% through 2024.
