Gold Prices Rise as Yen Rally Weakens Dollar 
Canada Retaliatory Tariffs on U.S. Goods Take Effect 
Brent Oil Tops $100 as Middle East Conflict Threatens Supply 
Gold Prices Rebound as Dollar Weakens, Fed Decision Looms 
German Inflation Accelerates to 2.9% in August 
Oil Prices Rally as Brent Nears $100 on U.S.-Iran Escalation 
Oil Prices Climb as Iran Threatens Gulf Energy Infrastructure 
Oil Prices Hold Near Highs as U.S.-Iran Conflict Escalates 
Asian Stocks Mixed as Korean Chipmakers Rally 
Asian Stocks Mixed as AI Chip Rally Meets Oil Surge 
Asian Stocks Fall as Oil Tops $100, Yields Rise 
China Inflation Accelerates in August as CPI, PPI Rise 
UK Food Inflation Forecast to Hit 6.4% by Mid-2027 
Japan GDP Growth Beats Forecast, Boosting BOJ Rate Hike Bets 
Hormuz Shipping Slows as Iran Threats Lift Oil Risks 
South Korea GDP Surges on Chip and AI Boom 
China Boosts Gold Reserves by 650,000 Ounces as Prices Rally 
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Japan’s Yen Drops to 2-Month Low as US Dollar Strengthens
Japan’s yen fell to a two-month low of 149.10 on Monday after last week's over 4% decline, marking its biggest weekly drop since 2009. The decline in the yen is driven by a stronger US dollar following robust US jobs data and heightened geopolitical tensions in the Middle East.
US Dollar Rally on Strong Employment Data
The US dollar surged after a jobs report showed the largest jump in six months, accompanied by a drop in unemployment and solid wage growth. These figures signal a robust economy, prompting markets to adjust expectations for potential Federal Reserve rate cuts. Chris Weston, head of research at Pepperstone, remarked that the positive economic data and China's liquidity measures boosted equities and the dollar.
Geopolitical Tensions in the Middle East Affect Markets
Heightened tensions in the Middle East contributed to market volatility. Israel launched strikes on Hezbollah targets in Lebanon and bombed the Gaza Strip, as its Defense Minister hinted at potential retaliation against Iran. Brent crude oil futures dipped 0.7% on Monday, though last week’s 8% gain was the largest since early 2023.
Yen Underperformance and Currency Movements
The yen's underperformance was also influenced by comments from Japan’s new prime minister, suggesting rate hikes are not imminent. The US dollar index remained steady after a 0.5% rise on Friday, hitting a seven-week high. Meanwhile, the euro traded at $1.0970, and the British pound (sterling) was flat at $1.3122 after last week's sharp drop.
US Treasury Yields and Federal Reserve Expectations
US 10-year Treasury yields edged higher, nearing 4%, as investors sought safe-haven assets amid geopolitical tensions. The Federal Reserve’s rate outlook shifted, with markets pricing in a 95% chance of a quarter-point rate hike in November, based on CME's FedWatch tool data.
