Holiday Economic Questions: What Bank of America Says You Should Expect 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
Vietnam’s November Trade Sees Monthly Decline but Strong Year-on-Year Growth 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
U.S. Stocks Rise as Cooler Inflation Boosts Hopes for Fed Rate Cut 
Russia Stocks Close Flat as MOEX Hits 1-Month High 
Trump Meets Mexico and Canada Leaders After 2026 World Cup Draw Amid USMCA Tensions 
Fed Meeting Sparks Division as Markets Brace for Possible Rate Cut 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Spain’s Industrial Output Records Steady Growth in October Amid Revised September Figures 
The U.S. dollar reversed earlier losses on Friday after President Donald Trump abruptly ended trade talks with Canada and threatened military action against Iran. These unexpected moves rattled markets, boosting the greenback as investors sought safety amid rising geopolitical tension.
ForexLive’s chief currency analyst, Adam Button, noted that Trump’s unpredictability continues to undermine market assumptions. While the dollar initially gained on safe-haven demand, Button warned the rally may fade as the trade war has weighed on the currency throughout the year.
The Canadian dollar dropped 0.5% to C$1.37 after Trump cited Canada’s digital services tax as the reason for halting negotiations. Meanwhile, Trump criticized Iran’s leadership and said he might resume bombing if uranium enrichment continues.
Earlier, the dollar fell to a three-and-a-half-year low against the euro, driven by expectations of more aggressive Federal Reserve rate cuts due to weak economic data. Reports showed a dip in U.S. consumer spending in May and a sharp rise in unemployment claims, with GDP revisions highlighting weaker consumption.
Fed Chair Jerome Powell’s recent congressional testimony was seen as dovish. Additionally, speculation that Trump may replace Powell with a more dovish candidate has intensified market expectations of rate cuts. Traders now price in 65 basis points of cuts by year-end, up from 46 points a week ago.
The dollar index remained flat at 97.36 but is set for a 1.4% weekly loss, its worst since mid-May. The euro hit $1.1754, its highest since 2021, and sterling rose 1.85% for the week. Against the yen, the dollar gained slightly to 144.65 but still posted a 0.94% weekly drop.
Bitcoin dipped 0.86% to $106,879.
