Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
BOJ Signals Imminent Interest Rate Hike Amid Strengthening Economic Conditions 
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 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
U.S. May Withhold $30.4 Million From Minnesota Over Improper Commercial Driver Licenses 
South Korea Posts Stronger-Than-Expected 1.3% Economic Growth in Q3 
Indonesia Aims to Strengthen Rupiah as Central Bank Targets 16,400–16,500 Level 
South Korea Inflation Edges Up in November as Food and Service Costs Climb 
Trump and Lula Discuss Trade, Sanctions, and Security in “Productive” Phone Call 
Japan’s Finance Minister Signals Alignment With BOJ as Rate Hike Speculation Grows 
Dollar Slips as Weak U.S. Manufacturing Data Increases Pressure for Fed Rate Cuts 
The euro climbed to a six-week high as the European Central Bank (ECB) signaled it may pause further interest rate cuts following a 25-basis-point reduction to 2%. ECB President Christine Lagarde described the central bank as being in a “good place,” sparking market optimism that the aggressive easing cycle is nearing its end.
Lagarde's comments shifted market sentiment, with investors reducing bets on another rate cut in July. Money markets now price in just a 20% chance of a cut next month, down from 30% before her statement. Eurozone bond yields surged, with two-year German yields rising 8 basis points to 1.88%, their largest one-day jump in weeks.
Analysts noted that the ECB’s surprisingly hawkish tone, despite revised inflation forecasts, drove the euro’s gains. Commerzbank’s Michael Pfister said the currency’s strength reflects expectations that the rate-cut cycle is ending. The euro’s trade-weighted index is up nearly 4% this year, while falling oil prices have helped ease inflation, now at 1.9% in May.
Fidelity’s Becky Qin expects European investors to repatriate capital, further supporting the euro. Though inflation may dip short-term, future fiscal stimulus and trade tensions could reignite price pressures. The ECB revised its 2025 growth forecast to 0.9% and trimmed 2026 projections to 1.1%.
While Lagarde emphasized data-dependence, she confirmed near-unanimous support for the recent cut. The ECB remains cautious, with U.S. tariff policy, particularly threats from President Trump, posing a significant risk. Talks between Washington and the EU ahead of a July 9 deadline may shape the ECB's next steps.
For now, markets see a “wait-and-see” stance from the ECB as likely, with the eurozone economy showing resilience through steady PMI readings and easing inflation trends.
