Oil Prices Rebound as Strait of Hormuz Tensions Return After Ship Attack Near Oman 
Gold Price Falls as Fed Rate Hike Fears and U.S.-Iran Tensions Weigh on Bullion 
US Stock Futures Rise as US-Iran Ceasefire Hopes Boost Market Sentiment 
Iran Attack in Strait of Hormuz Pushes Oil Prices Higher 
Economic pessimism has set in – but there are reasons for Australians to be hopeful 
US Dollar Slips After PCE Inflation Data as Fed Rate Hike Expectations Stay Elevated 
S&P Affirms Brazil’s BB Credit Rating with Stable Outlook Amid Fiscal Challenges 
Oil Prices Rise as US-Iran Tensions Threaten Strait of Hormuz Oil Shipments 
Asian Currencies Trade Mixed as Yen Hovers Near 40-Year Low, Dollar Holds Firm on Fed Outlook 
Asian Currencies Stay Range-Bound as Investors Eye China Data, RBNZ Outlook and U.S.-Iran Ceasefire 
Gold Price Ends Lower for Fourth Week Despite Rebound as Fed Rate Hike Bets Strengthen 
China Factory PMI Seen Returning to Growth in June as AI Export Demand Supports Economy 
World Bank Approves $1.1 Billion Emergency Funding for Bangladesh Amid Food and Energy Price Pressures 
Asian Stocks Slip as US-Iran Ceasefire Hopes Lift Oil, Dollar Strength Persists 
US Dollar Slips After PCE Inflation Data Eases Fed Rate Hike Expectations 
The U.S. dollar strengthened on Monday after President Donald Trump announced plans for new 25% tariffs on all steel and aluminum imports. This move pressured the euro, Australian dollar, and New Zealand dollar while fueling concerns over a global trade war. Trump also stated he would introduce reciprocal tariffs matching other countries' levies, with details expected Tuesday or Wednesday.
The euro slipped 0.1% to $1.0317, nearing last week’s two-year low of $1.0125, as investors braced for Trump’s tariffs on Europe. The Australian dollar fell 0.21% to $0.6264, while the New Zealand dollar dipped 0.12% to $0.5649. The Canadian dollar, impacted by its position as the largest U.S. aluminum supplier, weakened by over 0.2%.
Charu Chanana, chief investment strategist at Saxo, noted that China is no longer a major U.S. steel supplier due to past tariffs but warned of increased market uncertainty and a shift toward protectionism.
Investors now await U.S. inflation data on Wednesday and Federal Reserve Chair Jerome Powell’s congressional testimony on Tuesday and Wednesday, where tariffs are expected to be a key topic. Analysts suggest new tariffs could drive inflation and pressure the Fed to maintain high interest rates. Markets have adjusted expectations, now pricing in 36 basis points of rate cuts for 2025, down from 42 bps after a strong jobs report.
Macquarie strategists revised their Fed outlook, predicting no rate cuts in 2025, keeping rates in the 4.25%-4.5% range. The dollar index remained steady at 108.23. Sterling held at $1.23915, while the Japanese yen weakened 0.4% to 152 per dollar but stayed near Friday’s one-month high amid expectations of a Bank of Japan rate hike.
