South Korea Central Bank Warns of Rising Financial Stability Risks Amid Won Volatility 
Platinum Price Surges Past $2,000 as Demand and Supply Dynamics Tighten 
Yen Slides as BOJ Caution Undercuts Rate Hike Impact 
German Exports to the U.S. Decline Sharply as Tariffs Reshape Trade in 2025 
Kevin Hassett Says Inflation Is Below Target, Backs Trump’s Call for Rate Cuts 
China Keeps Benchmark Lending Rates Steady as Economic Outlook Remains Cautious 
Oil Prices Steady in Asia but Headed for Weekly Loss on Supply Glut Concerns 
Wall Street Ends Higher as S&P 500, Nasdaq Extend Gains Ahead of Holiday Week 
Silver Prices Hit Record High as Geopolitical Tensions Fuel Safe-Haven Demand 
IMF Reaches Staff-Level Agreement With Egypt, Opening Path to $3.8 Billion in Funding 
Russia Stocks End Flat as Energy Shares Support MOEX Index 
Trump Defends Economic Record in North Carolina as Midterm Election Pressure Mounts 
UK Economy Grows 0.1% in Q3 2025 as Outlook Remains Fragile 
China’s Power Market Revamp Fuels Global Boom in Energy Storage Batteries 
Oil Prices Ease in Asia as Geopolitical Risks Clash With Weak Demand Outlook 
U.S. Dollar Slips as Yen Finds Support on Intervention Signals and Geopolitical Risks Rise 
Dollar Strengthens Amid Fed Rate Uncertainty and Middle East Tensions
The US dollar surged to a seven-week high against major currencies, driven by evolving expectations for US interest rates and rising tensions in the Middle East. A robust US jobs report last week reduced the likelihood of significant Federal Reserve rate cuts, influencing market sentiment.
Fed Rate Cut Expectations Shift
Investors have adjusted their predictions for Federal Reserve rate cuts. According to the CME FedWatch tool, markets now see an 86% probability of a 25 basis points (bps) cut in November, with December easing expectations lowered to 50 bps from over 70 bps a week prior. This shift has strengthened the dollar against the euro, yen, and sterling.
Forex Market Trends
The dollar index, which measures the USD against major currencies, stood at 102.41, slightly below Friday's seven-week high of 102.69. Traders are factoring in a "no landing" scenario, with strong economic data supporting a cautious Fed approach to rate cuts.
Global Currency Movements
The euro traded at $1.0981, while the pound was at $1.3095, both near recent lows. The yen, which fell to a seven-week low of 149.10 per dollar, recovered slightly to 147.795 following remarks from Japanese officials expressing caution over future rate hikes.
Looking Ahead
Investor focus will now turn to the upcoming US inflation report and the Federal Reserve’s September meeting minutes, as well as key monetary policy decisions from New Zealand and China's reopening after the holidays.
