Gold and Silver Prices Plunge as Trump Taps Kevin Warsh for Fed Chair 
China Factory Activity Slips in January as Weak Demand Weighs on Growth Outlook 
Dollar Holds Firm as Markets Weigh Warsh-Led Fed and Yen Weakness Ahead of Japan Election 
Asian Currencies Hold Firm as Dollar Rebounds on Fed Chair Nomination Hopes 
Canada’s Trade Deficit Jumps in November as Exports Slide and Firms Diversify Away From U.S. 
Wall Street Slides as Warsh Fed Nomination, Hot Inflation, and Precious Metals Rout Shake Markets 
Japan Election Poll Signals Landslide Win for Sanae Takaichi, Raising Fiscal Policy Concerns 
U.S. Stock Futures Slip as Markets Brace for Big Tech Earnings and Key Data 
EU Recovery Fund Faces Bottlenecks Despite Driving Digital and Green Projects 
IMF Forecasts Global Inflation Decline as Growth Remains Resilient 
Philippines Manufacturing PMI Hits Nine-Month High Despite Weak Confidence Outlook 
UK Employers Plan Moderate Pay Rises as Inflation Pressures Ease but Persist 
Why Trump’s new pick for Fed chair hit gold and silver markets – for good reasons 
South Korea Exports Surge in January on AI Chip Demand, Marking Fastest Growth in 4.5 Years 
Asian Markets Slide as Silver Volatility, Earnings Season, and Central Bank Meetings Rattle Investors 
U.S.–Venezuela Relations Show Signs of Thaw as Top Envoy Visits Caracas 
The U.S. dollar is on track for further weakness through the end of the year as the Federal Reserve resumes its rate-cutting cycle, according to ING economists. Markets are now pricing in a 125–150 basis point easing without clear signs of an imminent U.S. recession, creating a favorable backdrop for risk assets and non-dollar currencies.
Following July’s soft U.S. jobs data, investors have adopted a positive outlook, viewing the dollar’s decline as a healthy adjustment. The combination of a steepening U.S. yield curve, steady equity markets, and expectations of three Fed rate cuts supports projections for EUR/USD to climb toward 1.20 by year-end. Seasonal dollar weakness is also expected to add momentum.
This outlook highlights the powerful influence of monetary policy in G10 foreign exchange markets. The euro, British pound, and Australian dollar are well-positioned to sustain gains, while the Japanese yen faces uncertainties from possible leadership changes in Japan’s ruling Liberal Democratic Party and shifting Bank of Japan policy.
In emerging markets, the Chinese yuan remains relatively stable despite trade tensions, while the Indian rupee, Indonesian rupiah, and Philippine peso face headwinds from tariffs and geopolitical risks. By contrast, Latin American currencies are benefiting from high yields, and the Czech koruna shows stronger fundamentals compared to Hungary’s forint, which is largely supported by carry trade demand.
ING’s analysis suggests that as the Fed embarks on a new easing cycle, the dollar is likely to remain under pressure. A weaker dollar favors a risk-on environment, boosting global growth prospects and activity-linked currencies. Despite challenges from tariffs and bond market volatility, resilient risk appetite and central bank policy shifts are expected to keep investors focused on opportunities beyond the U.S. dollar.
