Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
European Oil & Gas Stocks Face 2026 With Cautious Outlook Amid Valuation Pressure 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification 
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
The U.S. dollar reversed earlier losses on Friday after President Donald Trump abruptly ended trade talks with Canada and threatened military action against Iran. These unexpected moves rattled markets, boosting the greenback as investors sought safety amid rising geopolitical tension.
ForexLive’s chief currency analyst, Adam Button, noted that Trump’s unpredictability continues to undermine market assumptions. While the dollar initially gained on safe-haven demand, Button warned the rally may fade as the trade war has weighed on the currency throughout the year.
The Canadian dollar dropped 0.5% to C$1.37 after Trump cited Canada’s digital services tax as the reason for halting negotiations. Meanwhile, Trump criticized Iran’s leadership and said he might resume bombing if uranium enrichment continues.
Earlier, the dollar fell to a three-and-a-half-year low against the euro, driven by expectations of more aggressive Federal Reserve rate cuts due to weak economic data. Reports showed a dip in U.S. consumer spending in May and a sharp rise in unemployment claims, with GDP revisions highlighting weaker consumption.
Fed Chair Jerome Powell’s recent congressional testimony was seen as dovish. Additionally, speculation that Trump may replace Powell with a more dovish candidate has intensified market expectations of rate cuts. Traders now price in 65 basis points of cuts by year-end, up from 46 points a week ago.
The dollar index remained flat at 97.36 but is set for a 1.4% weekly loss, its worst since mid-May. The euro hit $1.1754, its highest since 2021, and sterling rose 1.85% for the week. Against the yen, the dollar gained slightly to 144.65 but still posted a 0.94% weekly drop.
Bitcoin dipped 0.86% to $106,879.
