China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
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 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
South Korea’s KOSPI Triggers Trading Curb as AI Chip Stock Selloff Deepens 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Dollar Eases as Middle East Conflict, Fed Outlook and Japan Pension Policy Drive FX Markets 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Asia Stocks Slip as Iran-Hormuz Tensions Lift Oil Prices, Dollar and Bond Yields 
Iraq PM Visits Washington as U.S. Oil, Gas Deals Take Center Stage 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
The U.S. dollar strengthened on Thursday as investors increased expectations that the Federal Reserve could raise interest rates again later this year following stronger-than-expected economic data. Fresh inflation figures and resilient retail sales reinforced confidence in the U.S. economy, helping the greenback climb against major global currencies.
The U.S. Dollar Index, which measures the currency against six major peers, advanced 0.3% to 98.82. Market sentiment shifted after recent consumer price index (CPI) and producer price index (PPI) reports showed inflation pressures remain elevated. April retail sales also increased 0.5%, matching analyst expectations, although growth slowed compared to March’s stronger gain. Economists noted that consumers continue spending despite higher fuel costs and inflation concerns, signaling ongoing economic resilience.
Rising oil prices linked to Middle East tensions have also influenced inflation expectations, reducing hopes for potential Federal Reserve rate cuts. Higher interest rates typically support the U.S. dollar by attracting global investors seeking stronger returns.
Attention also turned to President Donald Trump’s visit to China, where trade talks, artificial intelligence cooperation, and discussions surrounding Iran dominated headlines. Chinese President Xi Jinping reportedly expressed willingness to assist diplomatic efforts regarding the Middle East crisis, while investors monitored potential progress in U.S.-China trade relations. Reports suggesting the U.S. approved several Chinese firms to purchase Nvidia’s H200 AI chips further boosted market optimism. Boeing shares also benefited after Trump announced China agreed to purchase 200 aircraft from the American manufacturer.
In currency markets, the British pound weakened despite stronger UK GDP growth data, while the euro and Japanese yen also lost ground against the dollar. The Chinese yuan, however, remained near multi-year highs following positive sentiment surrounding the summit discussions.
