Fed Meeting Sparks Division as Markets Brace for Possible Rate Cut 
Russia Stocks Close Flat as MOEX Hits 1-Month High 
Vietnam’s November Trade Sees Monthly Decline but Strong Year-on-Year Growth 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
U.S. Stocks Rise as Cooler Inflation Boosts Hopes for Fed Rate Cut 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Holiday Economic Questions: What Bank of America Says You Should Expect 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
The U.S. dollar started the week on steady footing, trading at 143.57 yen and $1.1360 per euro, as investors braced for a wave of economic data that could reveal the impact of President Donald Trump's ongoing trade war. Despite stabilizing, the dollar remains on track for its largest monthly decline in nearly two and a half years, having dropped over 4% against both the euro and yen in April.
Signs of easing tensions between the U.S. and China last week, including reduced tariffs and more conciliatory rhetoric, helped the greenback recover slightly. However, uncertainty persists, as Beijing denies active trade negotiations despite Trump’s claims of progress. U.S. Treasury Secretary Scott Bessent also refrained from confirming any ongoing tariff talks.
Markets are now focused on upcoming key indicators, including April’s U.S. jobs report, first-quarter GDP data, and the Fed’s preferred inflation gauge, core PCE. A slowdown in hiring is anticipated, potentially influencing the dollar’s trajectory.
Meanwhile, the Australian dollar hovered near recent highs at $0.64, with traders eyeing Wednesday’s inflation data ahead of an expected rate cut. The New Zealand dollar also remained firm near $0.60. In Canada, voters head to the polls Monday, but little currency volatility is expected, with the Canadian dollar steady at C$1.3874.
The Bank of Japan will announce monetary policy on Thursday, with no major changes expected. Attention will be on the outlook, particularly amid speculation about U.S.-Japan trade talks influencing currency dynamics. Japan’s top currency official, Atsushi Mimura, denied reports that the U.S. favors a weaker dollar.
