China Exports Beat July Forecasts as AI Demand Fuels High-Tech Trade 
Australian Shares Fall as Westpac Slides, Miners Gain Ahead of RBA Decision 
Oil Prices Rise as Hormuz Reopening Remains Uncertain 
Asian Stocks Rise as Weak US Jobs Data Eases Fed Rate Hike Fears 
Iran-Oman Near Strait of Hormuz Deal as Shipping Tensions Persist 
US Dollar Near Two-Month Low as Markets Await Inflation Data 
US Stock Futures Flat as Iran Strait of Hormuz Demands Fuel Oil Concerns 
S&P 500, Nasdaq Futures Rise as Iran Risks and CPI Loom 
Japan Executives Warn Weak Yen and Currency Volatility Threaten Economy 
Gold Prices Surge 7% as Dollar Falls, Fed Rate Hike Bets Ease 
BOJ Rate Hike Expectations Rise Ahead of September Meeting 
US Dollar Gains as Iran Tensions, Fed Rate Hike Bets Rise 
Trump Unveils $3 Billion U.S. Critical Minerals Push 
Asian Currencies Steady as Markets Await U.S. Jobs Data 
Japan Posts First Current Account Deficit in 17 Months as Dividend Payments Surge 
Gold Prices Hold Near Seven-Week High as Markets Await U.S. Inflation Data 
The U.S. dollar edged lower on Tuesday, extending its losing streak to a fourth consecutive session as investor sentiment improved on growing expectations of a peace agreement between the United States and Iran. Market participants are also closely watching key central bank decisions from the Federal Reserve, Bank of Japan (BoJ), and Reserve Bank of Australia (RBA), which are shaping global forex market trends.
The U.S. Dollar Index (DXY), which measures the greenback against a basket of major currencies, slipped 0.1% to 99.56. The decline came as reports indicated that Washington and Tehran are expected to sign a memorandum of understanding (MoU) in Switzerland on Friday, raising hopes for a de-escalation of tensions in the Middle East. President Donald Trump stated that the Strait of Hormuz would fully reopen following the agreement, potentially easing disruptions to global energy supplies.
Despite optimism surrounding the deal, uncertainty remains over the exact terms, particularly regarding Iran’s nuclear commitments. Conflicting reports have emerged, while speculation about a proposed $300 billion investment fund tied to Iran has been dismissed by Trump.
The prospect of improved regional stability pushed oil prices below $80 per barrel for the first time since March. Lower crude prices have eased inflation concerns that had previously fueled expectations of additional interest rate hikes from major central banks.
Attention now turns to Wednesday’s Federal Reserve policy announcement. While the Fed is widely expected to keep interest rates unchanged, investors will closely monitor economic projections and comments from Fed Chair Kevin Warsh for clues on future monetary policy.
In Asia, the Bank of Japan raised its benchmark interest rate by 25 basis points to 1.0%, marking its highest level in more than three decades as policymakers continue efforts to normalize monetary policy and address inflation. Analysts suggest that declining oil prices could support a stronger yen and potentially drive USD/JPY lower in the coming months.
Meanwhile, the Australian dollar weakened after the Reserve Bank of Australia paused its recent tightening cycle, leaving rates unchanged at 4.35%. The British pound remained largely stable ahead of the Bank of England’s policy meeting, where officials are expected to maintain current rates amid weak economic growth and ongoing fiscal pressures.
Currency traders are expected to remain focused on geopolitical developments, oil price movements, and central bank guidance as these factors continue to influence global foreign exchange markets.
