BOJ Signals More Rate Hikes as Inflation Risks Rise Amid Energy Price Pressures 
Europe EV Demand Surges as Fuel Prices Rise Amid Iran Conflict 
Oil Prices Steady as U.S.-Iran Truce Uncertainty and Middle East Tensions Keep Markets on Edge 
German Auto Suppliers Turn Bearish as Investment and Jobs Shift Overseas 
Yen Near 40-Year Lows Despite BOJ Rate Hike, Markets Brace for Possible Intervention 
Asian Stocks Advance as Nikkei Nears Record High Ahead of Fed Decision 
Dollar Surges After Fed Holds Rates Steady, Signals Potential Tightening Ahead 
Gold Prices Rebound on U.S.-Iran Peace Deal Optimism Despite Fed Rate Hike Signals 
Canada Imposes 10% Tariff on Canned Vegetable Imports to Protect Domestic Industry 
Asian Stocks Rally as Japan and South Korea Reach Record Highs on US-Iran Peace Deal 
Canada, British Columbia Launch $5 Billion Infrastructure Partnership to Boost Housing, Transit, and Healthcare 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
Japan Signals Readiness to Intervene as USD/JPY Nears 161 Amid Yen Weakness 
Oil Prices Ease as Markets Weigh U.S.-Iran Peace Deal and Strait of Hormuz Reopening 
Trump Questions USMCA Renewal as Trade Talks Continue 
Asian Stocks Surge as Oil Prices Fall and Strong US Dollar Weighs on Markets 
Australia Eases Capital Gains Tax Reforms to Support Small Businesses and Startups 
The U.S. dollar weakened on Monday as the global bond market sell-off showed signs of slowing, while investors remained cautious over ongoing geopolitical tensions between the United States and Iran. The U.S. Dollar Index, which measures the greenback against a basket of major currencies, fell 0.3% to 99.19 after recording its strongest weekly performance in more than nine months.
Global bond yields had surged last week after inflation data from major economies highlighted the economic impact of rising oil prices linked to the Iran conflict and the continued disruption of the Strait of Hormuz. Investors responded by increasing expectations that central banks, including the Federal Reserve, may continue raising interest rates throughout 2026. However, market pressure eased slightly on Monday as U.S. Treasury yields stabilized.
According to the CME FedWatch Tool, traders are now pricing in the possibility of additional Federal Reserve rate hikes at upcoming policy meetings. Analysts believe inflation risks remain elevated due to geopolitical instability and higher energy costs. Moody’s Analytics Chief Economist Mark Zandi warned that persistent inflation expectations could force the Federal Reserve to maintain aggressive monetary tightening, even if it weakens economic growth.
Meanwhile, U.S. President Donald Trump announced that a planned military strike on Iran had been delayed following diplomatic requests from Gulf leaders. Trump stated that negotiations with Tehran were ongoing and emphasized that any future agreement must ensure Iran does not develop nuclear weapons. Despite renewed diplomatic efforts, major disagreements remain over Iran’s nuclear program, sanctions, and control of the Strait of Hormuz.
In currency markets, the euro and British pound gained against the dollar, while the Japanese yen weakened slightly. Investors are also closely monitoring the ongoing G7 finance ministers meeting in France, where policymakers are discussing the economic consequences of the Middle East conflict and increased market volatility.
