Dollar Surges After Fed Holds Rates Steady, Signals Potential Tightening Ahead 
Japan Signals Readiness to Intervene as USD/JPY Nears 161 Amid Yen Weakness 
Russia Stocks End Flat as MOEX Index Hits New 52-Week Low; Gold Falls and Oil Mixed 
Oil Prices Steady as U.S.-Iran Truce Uncertainty and Middle East Tensions Keep Markets on Edge 
Asian Stocks Rally as Japan and South Korea Reach Record Highs on US-Iran Peace Deal 
US Stock Futures Slip After Wall Street Rally Fueled by US-Iran Deal and Chipmaker Surge 
Gold Prices Rebound on U.S.-Iran Peace Deal Optimism Despite Fed Rate Hike Signals 
Asian Stocks Surge as Oil Prices Fall and Strong US Dollar Weighs on Markets 
Gold Prices Slide as Hawkish Fed and Strong Dollar Weigh on Bullion 
Trump and Iran Sign Framework Peace Deal in France Amid Ongoing Middle East Tensions 
Canada Imposes 10% Tariff on Canned Vegetable Imports to Protect Domestic Industry 
Trump Questions USMCA Renewal as Trade Talks Continue 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
China’s AI Manufacturing Boom Masks Weak Consumer Economy, Citi Says 
Trump Says No Hormuz Strait Tolls During 60-Day Iran Ceasefire 
Australia Eases Capital Gains Tax Reforms to Support Small Businesses and Startups 
Asian Currencies Steady as Dollar Holds Firm Ahead of Fed Decision and US-Iran Deal Details 
The U.S. dollar remained steady on Tuesday, hovering close to a three-month high, as mixed signals from the Federal Reserve prompted traders to scale back expectations for further interest rate cuts. Investors are also closely watching the Reserve Bank of Australia (RBA) meeting, where policymakers are expected to keep rates unchanged.
The yen weakened to 154.38 per dollar, near its lowest level in over eight months, triggering concerns of possible intervention from Japanese authorities. Meanwhile, differing opinions among Fed officials and a lack of official economic data due to the U.S. government shutdown have fueled uncertainty about the central bank’s policy direction.
After last week’s rate cut, Fed Chair Jerome Powell signaled that it could be the final reduction for the year. Market pricing now shows a 65% probability of another cut in December, down from 94% a week ago, according to CME’s FedWatch Tool. This recalibration in expectations has supported the dollar, with the euro slipping 0.11% to $1.1506 and the British pound easing to $1.312. The dollar index rose 0.1% to 99.99, marking a three-month high.
The shutdown has limited access to key economic data, leaving investors reliant on private reports such as ADP’s employment data. A recent ISM survey revealed that U.S. manufacturing contracted for the eighth consecutive month in October, underscoring economic weakness. Analysts at MUFG warned that prolonged shutdown risks could further dampen growth.
In Asia, the yen’s continued weakness contrasts with the Bank of Japan’s cautious stance, even as Governor Kazuo Ueda hinted at possible tightening later this year. Analysts expect further yen depreciation unless the BOJ acts soon.
The Australian dollar traded around $0.6535 ahead of the RBA meeting. Stronger-than-expected inflation data has reduced expectations for near-term rate cuts, with markets now anticipating only one cut by mid-2026. Economists predict the RBA could strike a more hawkish tone, potentially bolstering the Australian dollar in the coming sessions.
