U.S. Dollar Steadies Ahead of Fed Minutes as Markets Eye Policy Divisions 
U.S. Stock Index Futures Steady as Markets Await Fed Policy Clues in Holiday-Thinned Trade 
Oil Prices Stabilize at Start of 2026 as OPEC+ Policy and Geopolitical Risks Shape Market Outlook 
Asian Markets Slip as Precious Metals Cool, Geopolitical Tensions Weigh on Sentiment 
Forex Markets Hold Steady as Traders Await Fed Minutes Amid Thin Year-End Volumes 
South Korea Exports Hit Record High as Global Trade Momentum Builds 
Gold Prices Rebound in Europe as Geopolitical Tensions and Fed Outlook Support Bullion 
U.S. Dollar Starts 2026 Weak as Yen, Euro and Sterling Hold Firm Amid Rate Cut Expectations 
Oil Prices Slip Slightly as Markets Weigh Geopolitical Risks and Supply Glut Concerns 
Singapore GDP Growth Surges in 2025 but Outlook Remains Cautious Amid Global Trade Risks 
U.S. Stock Futures Slip as Year-End Trading Turns Cautious 
China Imposes 55% Tariff on Beef Imports Above Quota to Protect Domestic Industry 
South Korean Won Slides Despite Government Efforts to Stabilize Currency Markets 
Asian Stock Markets Start New Year Higher as Tech and AI Shares Drive Gains 
Federal Reserve Begins Treasury Bill Purchases to Stabilize Reserves and Money Markets 
Japanese Business Leaders Urge Government Action as Weak Yen Strains Economy 
South Korea Factory Activity Returns to Growth in December on Export Rebound 
Asian currencies traded in narrow ranges on Tuesday, while the U.S. dollar strengthened as upcoming trade talks between Washington and Beijing helped ease fears of a renewed trade war. The Japanese yen weakened further, extending losses from Monday amid expectations that fiscal dove Sanae Takaichi will become Japan’s next prime minister. A parliamentary vote later today is expected to confirm her leadership, solidifying forecasts of increased fiscal stimulus and looser spending policies.
Asian markets initially declined on renewed U.S.-China tensions, but optimism returned following conciliatory comments from U.S. officials, boosting regional currencies. Dovish remarks from Federal Reserve policymakers also fueled speculation of an October interest rate cut. However, lingering uncertainty about the U.S. economy, compounded by a government shutdown delaying key economic data, left investors cautious ahead of the Fed’s upcoming meeting. The dollar index and its futures both edged up 0.1% in Asian trade as investors sought safety.
The Chinese yuan (USD/CNY) traded flat but remained firm following strong midpoint fixes by the People’s Bank of China. Markets focused on potential progress in trade dialogue after U.S. President Donald Trump signaled optimism, saying tariffs on China were “not sustainable” and expressing hope for a fair deal with President Xi Jinping. Still, U.S. Trade Representative Jamieson Greer’s remarks on China’s “economic coercion” over rare earth exports tempered market enthusiasm.
Elsewhere, the Australian dollar (AUD/USD) slipped 0.1% despite Canberra signing a major critical minerals agreement with Washington. The South Korean won (USD/KRW) rose 0.2%, the Singapore dollar (USD/SGD) gained 0.1%, and the Taiwan dollar (USD/TWD) strengthened 0.2%. Indian markets remained closed for a public holiday.
