Austria’s AA Credit Rating Affirmed as Fitch Highlights Stable Outlook 
Fed Meeting Sparks Division as Markets Brace for Possible Rate Cut 
U.S. Stocks End Week Higher as Markets Anticipate Fed Rate Cut 
Trump Meets Mexico and Canada Leaders After 2026 World Cup Draw Amid USMCA Tensions 
Spain’s Industrial Output Records Steady Growth in October Amid Revised September Figures 
European Oil & Gas Stocks Face 2026 With Cautious Outlook Amid Valuation Pressure 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
BOJ Governor Ueda Highlights Uncertainty Over Future Interest Rate Hikes 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
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 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.
