India Budget 2025 Highlights Manufacturing Push but Falls Short of Market Expectations 
Starmer’s China Visit Highlights Western Balancing Act Amid U.S.-China Rivalry 
Wall Street Slides as Warsh Fed Nomination, Hot Inflation, and Precious Metals Rout Shake Markets 
China Manufacturing PMI Slips Into Contraction in January as Weak Demand Pressures Economy 
U.S. Government Faces Brief Shutdown as Congress Delays Funding Deal 
Russia Stocks End Flat as MOEX Closes Unchanged Amid Mixed Global Signals 
China Home Prices Rise in January as Government Signals Stronger Support for Property Market 
Asian Markets Slide as Silver Volatility, Earnings Season, and Central Bank Meetings Rattle Investors 
Canada’s Trade Deficit Jumps in November as Exports Slide and Firms Diversify Away From U.S. 
Philippines Manufacturing PMI Hits Nine-Month High Despite Weak Confidence Outlook 
UK Employers Plan Moderate Pay Rises as Inflation Pressures Ease but Persist 
China Factory Activity Slips in January as Weak Demand Weighs on Growth Outlook 
Japan Election Poll Signals Landslide Win for Sanae Takaichi, Raising Fiscal Policy Concerns 
Gold Prices Stabilize in Asian Trade After Sharp Weekly Losses Amid Fed Uncertainty 
JPMorgan Lifts Gold Price Forecast to $6,300 by End-2026 on Strong Central Bank and Investor Demand 
The U.S. dollar held firm early Thursday after a sharp plunge to a 3-1/2-year low and swift rebound, as traders digested the Federal Reserve’s cautious outlook on interest rates. The Fed cut rates by 25 basis points on Wednesday as expected, signaling more gradual easing ahead.
Fed Chair Jerome Powell described the move as a “risk-management” step tied to labor market weakness, while stressing there is no need to rush rate cuts. The central bank’s dot plot pointed to another 50 basis points of cuts this year, but only one reduction in 2026, highlighting ongoing uncertainty about inflation risks.
The dollar index tumbled to 96.224, its weakest since February 2022, before bouncing back to 97.074, up 0.44% on the day. The euro was steady at $1.1818 after spiking to a 27-month high of $1.19185. Sterling traded flat at $1.3626, easing from Wednesday’s peak of $1.3726.
Markets now await the Bank of England’s decision later Thursday, with policymakers expected to hold rates at 4%. U.K. inflation rose 3.8% annually in August, matching forecasts and reducing the likelihood of near-term cuts.
Against the yen, the dollar slipped 0.08% to 146.815 after briefly falling to 145.495, its weakest since July. The Bank of Japan is expected to hold rates Friday, though markets assign 50% odds of a hike by year-end. Political focus remains on Japan’s October 4 leadership vote after Prime Minister Shigeru Ishiba’s resignation.
Elsewhere, New Zealand’s dollar slid 0.49% to $0.5935 after GDP contracted more than expected, while the Australian dollar was steady at $0.6655 ahead of jobs data. The Canadian dollar held at C$1.3772 after the Bank of Canada cut rates to a three-year low, citing weak employment and easing inflation pressures.
