Gold Prices Rise Above $4,000 as Inflation Data and Weaker Dollar Boost Demand 
Japan Targets 1%+ Real Economic Growth With ¥370 Trillion Investment Plan 
Oil Prices Rise as US-Iran Tensions Threaten Strait of Hormuz Oil Shipments 
Oil Prices Drop as Middle East Supply Recovery Eases Market Concerns 
Morgan Stanley Sees Chinese Auto Market Recovery Gaining Momentum in Late Summer 
Bank Regulation Rollbacks in the U.S. and UK Could Increase Financial Risks, Study Warns 
Economic pessimism has set in – but there are reasons for Australians to be hopeful 
Wall Street Ends Lower as AI Stocks Drag Markets, Fed Rate Outlook Shifts 
US Dollar Slips After PCE Inflation Data Eases Fed Rate Hike Expectations 
World Bank Approves $1.1 Billion Emergency Funding for Bangladesh Amid Food and Energy Price Pressures 
Gold Price Falls as Fed Rate Hike Fears and U.S.-Iran Tensions Weigh on Bullion 
US Stock Futures Rise as US-Iran Ceasefire Hopes Boost Market Sentiment 
Trump Threatens 100% Tariffs on Countries Imposing Digital Services Taxes on U.S. Tech Firms 
US Dollar Slips After PCE Inflation Data as Fed Rate Hike Expectations Stay Elevated 
SpaceX Eyes Starlink Mobile Phone Service to Challenge Verizon, AT&T, and T-Mobile 
Asian Currencies Trade Mixed as Yen Hovers Near 40-Year Low, Dollar Holds Firm on Fed Outlook 
S&P Affirms Brazil’s BB Credit Rating with Stable Outlook Amid Fiscal Challenges 
Japan’s Yen Drops to 2-Month Low as US Dollar Strengthens
Japan’s yen fell to a two-month low of 149.10 on Monday after last week's over 4% decline, marking its biggest weekly drop since 2009. The decline in the yen is driven by a stronger US dollar following robust US jobs data and heightened geopolitical tensions in the Middle East.
US Dollar Rally on Strong Employment Data
The US dollar surged after a jobs report showed the largest jump in six months, accompanied by a drop in unemployment and solid wage growth. These figures signal a robust economy, prompting markets to adjust expectations for potential Federal Reserve rate cuts. Chris Weston, head of research at Pepperstone, remarked that the positive economic data and China's liquidity measures boosted equities and the dollar.
Geopolitical Tensions in the Middle East Affect Markets
Heightened tensions in the Middle East contributed to market volatility. Israel launched strikes on Hezbollah targets in Lebanon and bombed the Gaza Strip, as its Defense Minister hinted at potential retaliation against Iran. Brent crude oil futures dipped 0.7% on Monday, though last week’s 8% gain was the largest since early 2023.
Yen Underperformance and Currency Movements
The yen's underperformance was also influenced by comments from Japan’s new prime minister, suggesting rate hikes are not imminent. The US dollar index remained steady after a 0.5% rise on Friday, hitting a seven-week high. Meanwhile, the euro traded at $1.0970, and the British pound (sterling) was flat at $1.3122 after last week's sharp drop.
US Treasury Yields and Federal Reserve Expectations
US 10-year Treasury yields edged higher, nearing 4%, as investors sought safe-haven assets amid geopolitical tensions. The Federal Reserve’s rate outlook shifted, with markets pricing in a 95% chance of a quarter-point rate hike in November, based on CME's FedWatch tool data.
