BoE Set to Cut Rates as UK Inflation Slows, but Further Easing Likely Limited 
U.S. Stock Futures Edge Higher as Micron Earnings Boost AI Sentiment Ahead of CPI Data 
Bank of Korea Downplays Liquidity’s Role in Weak Won and Housing Price Surge 
Silver Prices Hit Record High as Safe-Haven Demand Surges Amid U.S. Economic Uncertainty 
Trump Orders Blockade of Sanctioned Oil Tankers, Raising Venezuela Tensions and Oil Prices 
Wall Street Futures Slip as Tech Stocks Struggle Ahead of Key US Economic Data 
Singapore Growth Outlook Brightens for 2025 as Economists Flag AI and Geopolitical Risks 
New Zealand Budget Outlook Shows Prolonged Deficits Despite Economic Recovery Hopes 
Australian Consumer Sentiment Slumps in Early December as Inflation Fears Resurface 
Gold and Silver Surge as Safe Haven Demand Rises on U.S. Economic Uncertainty 
RBA Unlikely to Cut Interest Rates in 2026 as Inflation Pressures Persist, Says Westpac 
Japan PMI Data Signals Manufacturing Stabilization as Services Continue to Drive Growth 
Oil Prices Slip in Asia as 2026 Supply Glut Fears and Russia-Ukraine Talks Weigh on Markets 
Asian Stocks Slide as AI Valuation Fears and BOJ Uncertainty Weigh on Markets 
Asian Currencies Trade Sideways as Dollar Weakens Ahead of Key U.S. Data 
South Korea Warns Weak Won Could Push Inflation Higher in 2025 
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.
