Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
Spain’s Industrial Output Records Steady Growth in October Amid Revised September Figures 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
The US dollar hovered near a three-week high against major currencies on Tuesday as markets awaited key inflation data that could influence Federal Reserve policy. Support for the greenback came from rising Treasury yields and speculation over Fed Chair Jerome Powell’s future, following renewed criticism from President Donald Trump.
The dollar index stood at 98.104, just below Monday’s peak of 98.136, its strongest since June 25. It traded at 147.75 yen, near its recent high of 147.78. The euro remained steady at $1.1662 after slipping to a low of $1.1650.
Markets are focused on upcoming US inflation figures, with headline inflation expected to rise to 2.7% year-on-year from 2.4%, and core inflation to 3.0% from 2.8%, according to a Reuters poll. Fed Chair Powell previously suggested summer inflation may increase due to tariffs, reinforcing expectations that rate cuts may be delayed until later this year.
However, should inflation remain flat or weaken, calls for monetary easing could grow. Trump on Monday intensified his attacks on Powell, suggesting rates should be slashed to 1% or below from the current 4.25%–4.50%. Futures markets are pricing in 50 basis points in cuts by year-end, with the first move likely in September.
Bitcoin hit a new all-time high of $123,153.22 on Monday and was trading at $120,067, amid optimism over favorable crypto legislation this week.
Meanwhile, the Australian dollar dipped to $0.6542 as investors awaited China’s Q2 GDP report. Analysts expect growth to slow to 5.1% from 5.4% amid trade pressures and a weakening property market. Disappointing data could weigh further on the Aussie, given China’s role as Australia’s top trading partner.
