Asian Stocks Rally as Japan and South Korea Reach Record Highs on US-Iran Peace Deal 
German Auto Suppliers Turn Bearish as Investment and Jobs Shift Overseas 
Oil Prices Steady as U.S.-Iran Truce Uncertainty and Middle East Tensions Keep Markets on Edge 
Japan Signals Readiness to Intervene as USD/JPY Nears 161 Amid Yen Weakness 
German Industry Employment Falls to Lowest Level in a Decade 
Trump and Iran Sign Framework Peace Deal in France Amid Ongoing Middle East Tensions 
Japan Inflation Stays Below BOJ Target Despite Rate Hike and Rising Energy Cost Risks 
Yen Near 40-Year Lows Despite BOJ Rate Hike, Markets Brace for Possible Intervention 
US Stock Futures Jump on Reports of Preliminary US-Iran Peace Deal Despite Fed’s Hawkish Outlook 
Australia Eases Capital Gains Tax Reforms to Support Small Businesses and Startups 
Gold Prices Slide as Hawkish Fed and Strong Dollar Weigh on Bullion 
Dollar Hits One-Month High as Hawkish Fed Outlook Boosts Greenback 
Trump Questions USMCA Renewal as Trade Talks Continue 
Dollar Surges After Fed Holds Rates Steady, Signals Potential Tightening Ahead 
Italy’s Economy Outpaces Eurozone Peers as Investment Spending Fuels Growth 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
The U.S. dollar is on track to record its strongest weekly performance since October, supported by upbeat economic data, a hawkish Federal Reserve outlook, and rising geopolitical tensions between the United States and Iran. Stronger-than-expected labor market figures, including a drop in weekly jobless claims, reinforced confidence in the resilience of the U.S. economy and boosted demand for the greenback.
In early Asian trading, the dollar held firm near a one-month high, pressuring major currencies. Sterling hovered around $1.3457, close to a one-month low, and is set for a weekly decline of nearly 1.5%. The euro slipped slightly to $1.1768, heading for a 0.8% weekly loss amid uncertainty surrounding European Central Bank President Christine Lagarde’s tenure. Against a basket of currencies, the U.S. dollar index stood at 97.89, marking a gain of more than 1% for the week.
Federal Reserve policy expectations remain a central driver of currency markets. Recent Fed minutes revealed several policymakers are open to further rate hikes if inflation remains persistent. Although investors are still pricing in roughly two rate cuts this year, the probability of a June cut has eased to around 58%, according to CME FedWatch data. Upcoming releases of the U.S. core PCE price index and fourth-quarter GDP figures are expected to influence the next move in forex markets.
Geopolitical risks have also fueled safe-haven demand for the dollar. U.S. President Donald Trump warned Iran to reach a nuclear agreement within 10 to 15 days, prompting threats of retaliation from Tehran. Escalating tensions could significantly impact oil prices and global currency markets.
Elsewhere, the Australian dollar traded at $0.7055, supported by hawkish domestic rate expectations, while the New Zealand dollar fell to $0.5967 amid a dovish outlook from the Reserve Bank of New Zealand. The Japanese yen weakened to 155.08 per dollar after Japan’s core inflation slowed to 2.0%, reducing pressure on the Bank of Japan to tighten policy further.
