Fed Near Neutral Signals Caution Ahead, Shifting Focus to Fixed Income in 2026 
Asian Stocks Rally as Tech Rebounds, China Lags on Nvidia Competition Concerns 
South Korea Extends Bond Market Stabilization Measures Amid Rising Financial Risks 
BOJ Expected to Deliver December Rate Hike as Economists See Borrowing Costs Rising Through 2025 
Asian Currencies Steady as Fed Delivers Hawkish Rate Cut; Aussie and Rupee Under Pressure 
Wall Street Futures Slip as Oracle Earnings Miss Reignites AI Spending Concerns 
Indonesia–U.S. Tariff Talks Near Completion as Both Sides Push for Year-End Deal 
Oil Prices Edge Higher as U.S. Seizes Sanctioned Venezuelan Tanker 
ASX Shares Slide After ASIC Imposes A$150 Million Capital Requirement 
Wall Street Futures Dip as Broadcom Slides, Tech Weighed Down Despite Dovish Fed Signals 
Oil Prices Rebound in Asia as Venezuela Sanctions Risks Offset Ukraine Peace Hopes 
Gold Prices Slip Slightly in Asia as Silver Nears Record Highs on Dovish Fed Outlook 
Modi and Trump Hold Phone Call as India Seeks Relief From U.S. Tariffs Over Russian Oil Trade 
Russia Stocks End Flat as Energy and Retail Shares Show Mixed Performance 
Korea Zinc Plans $6.78 Billion U.S. Smelter Investment With Government Partnership 
U.S. Dollar Slides for Third Straight Week as Rate Cut Expectations Boost Euro and Pound 
Fed Rate Cut Signals Balance Between Inflation and Jobs, Says Mary Daly 
The euro surged to its highest level since late 2021, climbing to $1.1589 before settling at $1.1568, as investors sought safe-haven assets amid rising geopolitical tensions and ongoing uncertainty over the U.S.-China trade truce. Concerns flared after U.S. President Donald Trump ordered some personnel to withdraw from the Middle East, warning it could become a "dangerous place" and reiterating his stance on preventing Iran from developing nuclear weapons.
Safe-haven demand drove gains for the Swiss franc, which rose 0.8% to 0.8138, and the Japanese yen, which climbed 0.6% to 143.70. Analysts pointed to the weakening U.S. dollar as a barometer of sentiment around the fragile trade environment. The U.S. Dollar Index dropped 0.35% to 98.108, hitting its lowest point since April 2022.
The euro also gained strength from a hawkish European Central Bank, signaling a potential pause in its easing cycle following inflation’s return to the 2% target. ECB official Isabel Schnabel attributed the euro’s strength to renewed investor confidence rather than rate differentials.
On trade, Trump hinted at extending a July 8 deadline for talks but confirmed the U.S. would issue “take-it-or-leave-it” offers to multiple countries, keeping tariff risks alive. Analysts warn these moves could keep pressure on U.S. inflation, especially with core PCE data still showing elevated price levels.
Meanwhile, the onshore Chinese yuan rose slightly to 7.1818, though future gains remain limited due to ongoing trade tensions. Barclays expects medium-term depreciation risks for the yuan.
Markets have now priced in two Federal Reserve rate cuts by year-end, with an 80% probability of a September move and full pricing of 100 basis points in cuts by late 2026.
