JPMorgan Lifts Gold Price Forecast to $6,300 by End-2026 on Strong Central Bank and Investor Demand 
Asian Currencies Hold Firm as Dollar Rebounds on Fed Chair Nomination Hopes 
China Manufacturing PMI Slips Into Contraction in January as Weak Demand Pressures Economy 
Gold Prices Stabilize in Asian Trade After Sharp Weekly Losses Amid Fed Uncertainty 
Wall Street Slides as Warsh Fed Nomination, Hot Inflation, and Precious Metals Rout Shake Markets 
U.S. Stock Futures Slip as Markets Brace for Big Tech Earnings and Key Data 
U.S. Government Faces Brief Shutdown as Congress Delays Funding Deal 
South Korea Factory Activity Hits 18-Month High as Export Demand Surges 
Starmer’s China Visit Highlights Western Balancing Act Amid U.S.-China Rivalry 
IMF Forecasts Global Inflation Decline as Growth Remains Resilient 
Dollar Holds Firm as Markets Weigh Warsh-Led Fed and Yen Weakness Ahead of Japan Election 
Philippines Manufacturing PMI Hits Nine-Month High Despite Weak Confidence Outlook 
Oil Prices Slide Nearly 3% as U.S.-Iran Talks Ease Geopolitical Tensions 
UK Employers Plan Moderate Pay Rises as Inflation Pressures Ease but Persist 
BOJ Policymakers Warn Weak Yen Could Fuel Inflation Risks and Delay Rate Action 
Russia Stocks End Flat as MOEX Closes Unchanged Amid Mixed Global Signals 
The U.S. dollar held steady on Tuesday, supported by signs of easing trade tensions between Washington and Beijing after President Donald Trump softened his stance on tariffs and hinted at a potential meeting with Chinese President Xi Jinping later this month. The shift in tone comes after a volatile Friday session when Trump abruptly announced 100% tariffs on Chinese exports, only to strike a more conciliatory tone over the weekend.
Treasury Secretary Scott Bessent confirmed that Trump remains committed to meeting Xi in South Korea in late October, boosting investor optimism that both nations are seeking a path to defuse tensions. The development breathed new life into the greenback, keeping the euro below $1.16 at $1.1566, while sterling slipped 0.06% to $1.3328. The New Zealand dollar fell to a six-month low at $0.57145.
Homin Lee, senior macro strategist at Lombard Odier, noted that both the U.S. and China appear to be searching for “an off-ramp” to prevent relations from deteriorating further, emphasizing that a prolonged escalation would be costly for both sides. “We suspect there will be an attempt to achieve an off-ramp,” he said.
Against a basket of major currencies, the dollar edged 0.04% higher to 99.34. The Australian dollar was steady at $0.6516, while the yen weakened 0.2% to 152.57 per dollar. Japan’s markets reopened after a long weekend amid political uncertainty following the collapse of a coalition supporting Sanae Takaichi’s bid to become the nation’s first female prime minister. Despite the turbulence, analysts expect the yen to strengthen, with Nigel Foo of First Sentier Investors saying the exchange rate “should not be at 152.”
Meanwhile, bitcoin dipped 0.36% to $115,380.19, extending last week’s 6% slide as risk sentiment waned. Ether also declined 0.77% to $4,256.42, following a broader crypto market selloff that wiped out over $19 billion in leveraged positions.
