IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
Vietnam’s November Trade Sees Monthly Decline but Strong Year-on-Year Growth 
Trump Meets Mexico and Canada Leaders After 2026 World Cup Draw Amid USMCA Tensions 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
Fed Meeting Sparks Division as Markets Brace for Possible Rate Cut 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
European Oil & Gas Stocks Face 2026 With Cautious Outlook Amid Valuation Pressure 
U.S. Stocks End Week Higher as Markets Anticipate Fed Rate Cut 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
Austria’s AA Credit Rating Affirmed as Fitch Highlights Stable Outlook 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
Asian currencies remained largely flat on Monday, even as the U.S. dollar weakened following a credit rating downgrade by Moody’s. The U.S. Dollar Index dropped 0.3% after the agency cut the government’s credit rating by one notch, citing the nation’s ballooning $36 trillion debt.
The Chinese yuan saw little movement, despite upbeat April industrial production data showing stronger-than-expected factory output. However, disappointing retail sales data highlighted weak domestic demand, keeping pressure on the yuan. Offshore USD/CNH and onshore USD/CNY both stayed muted.
Analysts from ING noted that U.S. tariffs will significantly impact industries with easily available alternatives, but much of China’s manufacturing doesn’t fall into that category. They also suggested that a temporary ceasefire in tariffs could spur economic activity in the coming months.
The Japanese yen outperformed regional peers, with the USD/JPY pair falling 0.3%, driven by expectations of further rate hikes from the Bank of Japan. The central bank’s deputy governor indicated that more hikes could follow if Japan's economy recovers from the impact of rising U.S. tariffs. However, recent data showed Japan's GDP shrank 0.7% in Q1 2025, its first decline in a year, which may limit the BOJ’s tightening capacity.
Other Asian currencies saw limited movement. The South Korean won edged higher, with the USD/KRW pair down 0.1%, while the Singapore dollar and Australian dollar saw slight gains. The Indian rupee remained unchanged.
Despite the weaker dollar, ongoing uncertainty around U.S. trade policy—especially President Trump’s threat to reimpose tariffs on countries not negotiating in "good faith"—kept investor sentiment cautious and capped gains across Asia’s forex markets.
