China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Iraq PM Visits Washington as U.S. Oil, Gas Deals Take Center Stage 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
South Korea’s KOSPI Triggers Trading Curb as AI Chip Stock Selloff Deepens 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
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.
