Gold Prices Slip as Oil Rally Fuels Inflation Fears, Strengthens Dollar 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
The U.S. dollar traded steadily on Tuesday as investors awaited the Federal Reserve’s release of its December meeting minutes, which are widely expected to reveal internal divisions over the future path of monetary policy. Currency markets remained calm amid thin holiday liquidity, following a challenging year for the greenback that lifted major rivals such as the euro and the British pound to multi-year highs.
The euro was last seen around $1.1772, putting it on track for an annual gain of nearly 14%, its strongest performance since 2017. Sterling also remained firm near $1.3509, heading for an approximate 8% rise in 2025. These moves reflect sustained pressure on the U.S. dollar, driven by expectations of Federal Reserve rate cuts, narrowing interest rate differentials, and concerns about U.S. fiscal deficits and political uncertainty.
The dollar index, which measures the currency against a basket of major peers, hovered near 98.03, close to a three-month low. It is set to record a yearly decline of about 9.6%, marking its steepest drop in eight years. Market participants are increasingly focused on the Fed’s outlook after the central bank cut rates earlier this month but signaled it may pause further easing in the near term. For next year, policymakers appear split, adding uncertainty to the dollar’s trajectory.
Traders are currently pricing in two additional rate cuts in 2026, suggesting further downside potential for the U.S. currency. Analysts at MUFG forecast the dollar index could fall another 5% next year, emphasizing that U.S. economic performance and monetary policy will remain the key drivers.
In Asia, the Japanese yen traded near 156.07 per dollar, moving away from levels that previously triggered verbal intervention warnings from Japanese officials. Despite two rate hikes by the Bank of Japan this year, the yen has remained broadly flat, reflecting investor frustration with the slow pace of tightening. Elsewhere, the Australian dollar hovered around $0.6693, near a 14-month high, while the New Zealand dollar rose to $0.5806, ending a four-year losing streak.
