Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Port of Los Angeles Posts Record June Cargo Volume as Importers Rush Ahead of U.S. Tariffs 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
The U.S. dollar traded steadily on Wednesday, hovering close to its lowest level since early October as fresh economic data reinforced concerns about a softening labor market and uncertainty over the Federal Reserve’s next interest rate move. Investors remain cautious, closely watching upcoming inflation data for clearer signals on the timing of potential rate cuts.
The dollar index, which tracks the greenback against six major currencies, stood at 98.193, near the October 3 low reached earlier in the week. The index is down roughly 9.5% so far this year, putting it on track for its steepest annual decline since 2017. Weakening expectations around U.S. monetary tightening have weighed heavily on the currency.
Recent labor market data showed the U.S. economy added 64,000 jobs in November, beating market expectations. However, the unemployment rate rose to 4.6%, with analysts noting that the prolonged government shutdown distorted the figures. Market participants remain unconvinced that the data materially alters the Federal Reserve’s policy outlook, especially with inflation figures still pending.
The Fed delivered a widely expected rate cut last week but signaled limited appetite for further easing, projecting just one additional cut in 2026. In contrast, financial markets are pricing in two cuts next year, though expectations for a January move remain low. Analysts suggest that unless inflation cools more sharply, a March rate cut may also be premature.
In currency markets, the euro traded near a 12-week high at $1.1751 ahead of the European Central Bank’s policy decision, where rates are expected to remain unchanged. Sterling held steady around $1.3424 following weak UK labor data that strengthened expectations for a Bank of England rate cut. Meanwhile, the Japanese yen firmed to around 154.56 per dollar as markets anticipate a Bank of Japan rate hike to a multi-decade high, driven by inflation pressures and concerns over a weak yen.
With multiple major central bank meetings and key inflation data ahead, global currency markets are likely to remain volatile as investors reassess interest rate trajectories into 2026.
