IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
Trump Meets Mexico and Canada Leaders After 2026 World Cup Draw Amid USMCA Tensions 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Holiday Economic Questions: What Bank of America Says You Should Expect 
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
Vietnam’s November Trade Sees Monthly Decline but Strong Year-on-Year Growth 
Austria’s AA Credit Rating Affirmed as Fitch Highlights Stable Outlook 
Fed Meeting Sparks Division as Markets Brace for Possible Rate Cut 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
U.S. Stocks End Week Higher as Markets Anticipate Fed Rate Cut 
Spain’s Industrial Output Records Steady Growth in October Amid Revised September Figures 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
U.S. Stocks Rise as Cooler Inflation Boosts Hopes for Fed Rate Cut 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
The U.S. dollar fell to multi-year lows on Thursday as currency traders fretted over political pressure on the Federal Reserve and the potential ouster of Chair Jerome Powell. A Wall Street Journal report said President Donald Trump had considered naming Powell’s replacement by early autumn, a move analysts warn could erode the Fed’s credibility and shake global confidence in U.S. monetary policy.
Kieran Williams of InTouch Capital Markets noted that an early, politically tipped appointment “would recalibrate rate expectations and spark a reassessment of dollar positioning.” Traders have already raised the implied probability of a July Fed rate cut to 25%—up from 12% a week ago—and now expect roughly 64 basis points of easing by year-end.
Against this backdrop, the euro advanced 0.2% to $1.1687, its strongest level since October 2021, while sterling climbed to a 29-month peak at $1.3690. The dollar index sank to 97.491, its weakest reading since early 2022. Safe-haven flows pushed the Swiss franc to 0.8033 per dollar, its best showing versus the greenback since 2011, and to a record high against the yen near 180.55. The dollar also slipped 0.2% against the yen to 144.89.
Trump’s looming July 9 tariff deadline added to market anxiety. JPMorgan analysts warned that higher duties could slow U.S. growth, lift inflation, and raise the probability of recession to 40%, ending what they call “a phase of U.S. exceptionalism.”
Dollar weakness has become a central market theme as investors question the currency’s reserve-status dominance. Europe, meanwhile, is attracting inflows on expectations that increased defense and infrastructure spending will support regional growth, further boosting the euro’s appeal in forex markets.
