Trump Endorses Japan’s Sanae Takaichi Ahead of Crucial Election Amid Market and China Tensions 
Gold and Silver Prices Slide as Dollar Strength and Easing Tensions Weigh on Metals 
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals 
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off 
South Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom 
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure 
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
Trump’s Inflation Claims Clash With Voters’ Cost-of-Living Reality 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Thailand Inflation Remains Negative for 10th Straight Month in January 
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks 
Russian Stocks End Mixed as MOEX Index Closes Flat Amid Commodity Strength 
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal 
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.
