Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Asian Stocks Slide as Chip Selloff Deepens Ahead of TSMC Earnings 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
Gold Prices Slip as Oil Rally Fuels Inflation Fears, Strengthens Dollar 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
The U.S. dollar remained under pressure on Monday, extending losses near a two-month low, while the euro and British pound held relatively steady as investors awaited a series of critical central bank decisions this week. Currency markets were largely rangebound during early Asian trading, reflecting cautious sentiment ahead of major economic events, including U.S. inflation data and the highly anticipated nonfarm payrolls report.
The Japanese yen was little changed after a key Bank of Japan survey showed that business sentiment among large manufacturers rose to a four-year high. Despite the positive data, the yen slipped 0.1% to 155.94 per dollar. The survey reinforced expectations that the Bank of Japan may raise interest rates later this week, marking a potential shift in Japan’s long-standing ultra-loose monetary policy. Market participants are closely watching Governor Kazuo Ueda’s guidance for clues on the future pace of rate hikes. Analysts at Societe Generale expect the BOJ to raise rates this week and forecast the policy rate could reach 1% by July next year, followed by gradual and cautious tightening.
Attention is also firmly on Europe, with rate decisions from the Bank of England and the European Central Bank scheduled. Markets have largely priced in a Bank of England rate cut as UK inflation shows signs of easing, though upcoming inflation data could still influence expectations. Sterling dipped 0.17% to $1.3359, while the euro edged down 0.09% to $1.1730. The ECB is widely expected to keep rates unchanged, although traders have begun speculating about a possible rate hike in 2026.
In the United States, investors are preparing for a wave of delayed economic data following a historic government shutdown. The November jobs report and inflation figures are expected to provide fresh insight into the health of the U.S. economy. The dollar index stood at 98.43, struggling to regain momentum after last week’s decline.
Meanwhile, the Australian dollar slipped slightly to $0.6647, while the New Zealand dollar edged higher to $0.5807. The Federal Reserve’s recent 25-basis-point rate cut and cautious guidance from Chair Jerome Powell continue to shape global currency trends as markets head toward year-end.
