U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
Holiday Economic Questions: What Bank of America Says You Should Expect 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
European Oil & Gas Stocks Face 2026 With Cautious Outlook Amid Valuation Pressure 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
Vietnam’s November Trade Sees Monthly Decline but Strong Year-on-Year Growth 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
Russia Stocks Close Flat as MOEX Hits 1-Month High 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
U.S. Stocks Rise as Cooler Inflation Boosts Hopes for Fed Rate Cut 
U.S. Stocks End Week Higher as Markets Anticipate Fed Rate Cut 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
The U.S. dollar hovered near its lowest levels in nearly four years against the euro and sterling on Monday, pressured by rising expectations of Federal Reserve rate cuts and optimism over global trade deals. Market sentiment turned increasingly dovish following Fed Chair Jerome Powell’s recent testimony, in which he signaled potential rate reductions if inflation remains subdued this summer. The CME FedWatch Tool now shows a 92.4% chance of a rate cut by September, up sharply from 70% last week.
Adding to the pressure, President Donald Trump continued his criticism of Powell, suggesting the Fed Chair resign and pushing for a benchmark rate cut to 1% from the current 4.25–4.5% range. Trump also reiterated plans to appoint a more dovish Fed leader.
While the dollar index edged slightly higher to 97.276, it remained close to a three-year low of 96.933. The euro held at $1.1716, just below its Friday high of $1.1754—the strongest since September 2021. Sterling traded at $1.3709, near levels not seen since October 2021, while the greenback was steady at 0.7988 Swiss franc after dipping to a decade low of 0.7955. Against the yen, it held at 144.58.
Markets also reacted to news that the U.S. and China resolved rare earth shipment issues, boosting confidence in trade progress. Treasury Secretary Scott Bessent hinted that several trade deals could be finalized by Labor Day. However, analysts at Commonwealth Bank of Australia expressed doubts over such swift progress, expecting uneven impacts on the dollar depending on currency pairs.
The Australian dollar inched up to $0.6537, nearing a recent multi-month high, as risk sentiment improved. Investors now await Friday’s U.S. payrolls report, a key factor in shaping the Fed’s next move.
