Hungary Industrial Output Beats Forecasts With 4.7% July Growth 
US Stock Futures Mixed as Fed Rate Hike Bets Rise 
South Korea GDP Surges on Chip and AI Boom 
China Inflation Accelerates in August as CPI, PPI Rise 
UK Food Inflation Forecast to Hit 6.4% by Mid-2027 
Asian Stocks Mixed as AI Chip Rally Meets Oil Surge 
Oil Prices Rally as Brent Nears $100 on U.S.-Iran Escalation 
Canada Retaliatory Tariffs on U.S. Goods Take Effect 
Brent Oil Tops $100 as Middle East Conflict Threatens Supply 
China Boosts Gold Reserves by 650,000 Ounces as Prices Rally 
Gold Prices Rebound as Dollar Weakens, Fed Decision Looms 
Hormuz Shipping Slows as Iran Threats Lift Oil Risks 
Japan, U.S. Stay Aligned on Yen as Currency Surges 
Oil Prices Hold Near Highs as U.S.-Iran Conflict Escalates 
China Exports Surge 25% in August as Trade Surplus Hits $119 Billion 
Japan GDP Growth Beats Forecast, Boosting BOJ Rate Hike Bets 
Japanese Yen Nears Seven-Month High as Oil Approaches $100 
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The U.S. dollar rebounded in volatile Asian trading on Tuesday after President Donald Trump suggested potential tariffs on Canada and Mexico, though specifics were scarce. Trump hinted at a 25% tariff announcement on February 1, surprising markets that had anticipated a more measured approach.
Trade-exposed currencies reacted sharply, with the Canadian dollar and Mexican peso falling. The dollar rose 1.2% to 1.4475 against the Canadian dollar and gained 1.3% on the peso. The dollar index climbed 0.6% to 108.65 after a 1.2% drop on Monday, its steepest daily decline since late 2023.
The euro slipped to $1.0364 from an earlier high of $1.0434, as the European Union, with its substantial trade surplus with the U.S., is seen as a potential target for tariffs. The dollar also rebounded 0.3% against the Japanese yen to 156.06, recovering from a five-week low of 154.90. The yen had strengthened last week on expectations of a Bank of Japan rate hike this Friday.
Market strategists were caught off guard by Trump’s aggressive tariff proposal. "A 25% tariff as a starting point is unexpected," said Shoki Omori, chief global desk strategist at Mizuho Securities. "Markets had anticipated an incremental approach, possibly beginning with China."
The dollar also gained 0.3% on the Chinese yuan to 7.2847. Trump has previously threatened China with tariffs as high as 60%, heightening concerns over trade tensions.
Currency markets are now closely monitoring developments, especially ahead of the Bank of Japan’s policy meeting and potential updates on U.S. trade policy.
