South Korea Inflation Hits Five-Month Low as CPI Reaches Central Bank Target 
India Budget 2025 Highlights Manufacturing Push but Falls Short of Market Expectations 
Asian Markets Slide as Silver Volatility, Earnings Season, and Central Bank Meetings Rattle Investors 
Gold and Asian Stocks Rebound as Market Volatility Eases and Global Sentiment Improves 
Japan Finance Minister Defends PM Takaichi’s Remarks on Weak Yen Benefits 
Gold Prices Stabilize in Asian Trade After Sharp Weekly Losses Amid Fed Uncertainty 
S&P 500 Rises as AI Stocks and Small Caps Rally on Strong Earnings Outlook 
Dollar Holds Firm as Strong U.S. Data, Fed Expectations and Global Central Bank Moves Shape Markets 
RBA Raises Interest Rates by 25 Basis Points as Inflation Pressures Persist 
South Korea Factory Activity Hits 18-Month High as Export Demand Surges 
Gold, Silver, and Platinum Rally as Precious Metals Recover from Sharp Selloff 
Indian Rupee Strengthens Sharply After U.S.-India Trade Deal Announcement 
U.S. Stock Futures Rise as Investors Eye Big Tech Earnings and AI Momentum 
Oil Prices Steady as Markets Weigh U.S.-Iran Talks, Dollar Strength Caps Gains 
EU Recovery Fund Faces Bottlenecks Despite Driving Digital and Green Projects 
Oil Prices Slide Nearly 3% as U.S.-Iran Talks Ease Geopolitical Tensions 
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.
