Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Port of Los Angeles Posts Record June Cargo Volume as Importers Rush Ahead of U.S. Tariffs 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
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 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
Gold Prices Slip as Oil Rally Fuels Inflation Fears, Strengthens Dollar 
The U.S. dollar began the first full trading week of the new year with modest gains, strengthening against major currencies as investors focused on upcoming economic data and Federal Reserve policy expectations. Early Monday trading saw the greenback climb to a three-and-a-half-week high against the euro, while also posting gains versus the British pound and the Japanese yen.
Although overall currency movements remained relatively contained, global market sentiment was influenced by heightened geopolitical risks. Investors remained cautious following reports of a dramatic U.S. operation in Venezuela that led to the capture of President Nicolas Maduro, who now faces drug-trafficking charges in New York. This unexpected development added an element of uncertainty to financial markets, potentially supporting safe-haven demand for the dollar.
Market attention is also firmly fixed on the U.S. economic calendar, which could play a decisive role in shaping Federal Reserve policy this year. Key macroeconomic indicators are scheduled throughout the week, starting with the ISM manufacturing survey and concluding with the closely watched monthly non-farm payrolls report on Friday. These data points are expected to provide fresh insight into the strength of the U.S. economy and the future direction of interest rates.
In early trading, the dollar rose 0.1% to around $1.1705 per euro, after briefly touching $1.170025, its strongest level since mid-December. The U.S. currency also advanced 0.1% against sterling to approximately $1.34495 per pound and edged up to 156.90 yen versus the Japanese currency.
Despite the dollar’s firm start, interest rate expectations remain a key variable. Futures markets currently price in two U.S. interest rate cuts this year, contrasting with the Federal Reserve’s own projections, which indicate just one cut amid a divided policymaking committee.
Adding to market focus, investors are closely watching the White House as President Donald Trump prepares to announce his choice for the next Federal Reserve chair. With Jerome Powell’s term ending in May, Trump has indicated he will make his decision this month, signaling a preference for a successor who strongly favors significantly lower interest rates. This looming leadership change could further influence dollar trends and broader financial markets in the months ahead.
