Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
The euro surged to its highest level since late 2021, climbing to $1.1589 before settling at $1.1568, as investors sought safe-haven assets amid rising geopolitical tensions and ongoing uncertainty over the U.S.-China trade truce. Concerns flared after U.S. President Donald Trump ordered some personnel to withdraw from the Middle East, warning it could become a "dangerous place" and reiterating his stance on preventing Iran from developing nuclear weapons.
Safe-haven demand drove gains for the Swiss franc, which rose 0.8% to 0.8138, and the Japanese yen, which climbed 0.6% to 143.70. Analysts pointed to the weakening U.S. dollar as a barometer of sentiment around the fragile trade environment. The U.S. Dollar Index dropped 0.35% to 98.108, hitting its lowest point since April 2022.
The euro also gained strength from a hawkish European Central Bank, signaling a potential pause in its easing cycle following inflation’s return to the 2% target. ECB official Isabel Schnabel attributed the euro’s strength to renewed investor confidence rather than rate differentials.
On trade, Trump hinted at extending a July 8 deadline for talks but confirmed the U.S. would issue “take-it-or-leave-it” offers to multiple countries, keeping tariff risks alive. Analysts warn these moves could keep pressure on U.S. inflation, especially with core PCE data still showing elevated price levels.
Meanwhile, the onshore Chinese yuan rose slightly to 7.1818, though future gains remain limited due to ongoing trade tensions. Barclays expects medium-term depreciation risks for the yuan.
Markets have now priced in two Federal Reserve rate cuts by year-end, with an 80% probability of a September move and full pricing of 100 basis points in cuts by late 2026.
