Iraq Seeks 6 Million Bpd OPEC+ Oil Quota 
Asian Stocks Mixed as Korean Chipmakers Rally 
US Stock Futures Mixed as Fed Rate Hike Bets Rise 
Fitch Eyes Japan Budget for Fiscal Discipline 
Asian Stocks Fall as Oil Tops $100, Yields Rise 
China Exports Surge 25% in August as Trade Surplus Hits $119 Billion 
Oil Prices Rally as Brent Nears $100 on U.S.-Iran Escalation 
Hormuz Shipping Slows as Iran Threats Lift Oil Risks 
Gold Prices Steady Ahead of U.S. Inflation Data and Fed Decision 
Oil Prices Hold Near Highs as U.S.-Iran Conflict Escalates 
China Inflation Accelerates in August as CPI, PPI Rise 
UK Food Inflation Forecast to Hit 6.4% by Mid-2027 
Japan GDP Growth Beats Forecast, Boosting BOJ Rate Hike Bets 
Japanese Yen Nears Seven-Month High as Oil Approaches $100 
Gold Prices Rebound as Dollar Weakens, Fed Decision Looms 
US Bans Canadian Alcohol, Motorcycles as Trade War Escalates 
Brent Oil Tops $100 as Middle East Conflict Threatens Supply 
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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.
