U.S. Launches New Strikes on Iran as Trump Signals Peace Deal Uncertainty 
Asian Markets Slide as New U.S. Strikes on Iran Spark Investor Caution 
Dow Hits Record High as Healthcare and Consumer Stocks Lead Wall Street Rally 
Oil Prices Fall as Markets Await U.S.-Iran Peace Deal Decision 
Gold Prices Hold Near Record Levels as Inflation Concerns Offset Middle East Ceasefire Hopes 
Iran-U.S. Nuclear Talks Remain Unresolved as Strait of Hormuz Risks Keep Markets on Edge 
UK Grocery Inflation Slows to 3.1% as Supermarket Price Pressures Ease in May 2026 
Gold Prices Slip as Stronger Dollar and Iran Peace Talk Uncertainty Weigh on Market 
European Stocks Rise as AI Optimism Offsets U.S.-Iran Tensions 
South Korea Central Bank Holds Interest Rates Steady Amid Inflation Concerns 
Tokyo Inflation Cools in May, Supporting BOJ’s Cautious Rate Hike Path 
European EV Sales Surge in April 2026 as Tesla and Chinese Automakers Gain Ground 
New World Screwworm Found Near U.S. Border Raises Threat to Cattle Industry and Beef Prices 
Oil Prices Set for Sharp Weekly Losses as U.S.-Iran Ceasefire Hopes Ease Supply Concerns 
Asian Stocks Rally as AI Boom and Iran Ceasefire Progress Lift Market Sentiment 
Dollar Strengthens Amid Fed Rate Uncertainty and Middle East Tensions
The US dollar surged to a seven-week high against major currencies, driven by evolving expectations for US interest rates and rising tensions in the Middle East. A robust US jobs report last week reduced the likelihood of significant Federal Reserve rate cuts, influencing market sentiment.
Fed Rate Cut Expectations Shift
Investors have adjusted their predictions for Federal Reserve rate cuts. According to the CME FedWatch tool, markets now see an 86% probability of a 25 basis points (bps) cut in November, with December easing expectations lowered to 50 bps from over 70 bps a week prior. This shift has strengthened the dollar against the euro, yen, and sterling.
Forex Market Trends
The dollar index, which measures the USD against major currencies, stood at 102.41, slightly below Friday's seven-week high of 102.69. Traders are factoring in a "no landing" scenario, with strong economic data supporting a cautious Fed approach to rate cuts.
Global Currency Movements
The euro traded at $1.0981, while the pound was at $1.3095, both near recent lows. The yen, which fell to a seven-week low of 149.10 per dollar, recovered slightly to 147.795 following remarks from Japanese officials expressing caution over future rate hikes.
Looking Ahead
Investor focus will now turn to the upcoming US inflation report and the Federal Reserve’s September meeting minutes, as well as key monetary policy decisions from New Zealand and China's reopening after the holidays.
