BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
The U.S. dollar slumped to its lowest level against the euro since September 2021, as President Trump’s $3.3 trillion tax-and-spending bill stirred fiscal concerns and weighed on investor sentiment. The euro surged to $1.1808, marking a near four-year high and its strongest first-half performance in history with a 13.8% gain, according to LSEG data.
Market focus is shifting to the Federal Reserve’s next move, with investors now pricing in 67 basis points of rate cuts this year. Goldman Sachs expects three 25-basis-point reductions in 2025, citing muted tariff effects and softening labor data. Traders are eyeing Thursday’s nonfarm payrolls report, which is forecast to show 110,000 new jobs in June and a rise in unemployment to 4.3%.
The dollar index fell to 96.612, its weakest since February 2022, as investors bet on a more dovish Fed. The yen strengthened to 143.77 per dollar, gaining 9% year-to-date, while sterling held firm at $1.3739. Concerns about central bank independence have grown amid Trump’s repeated attacks on Fed Chair Jerome Powell and pressure for aggressive rate cuts. Trump even sent Powell a note suggesting U.S. rates should mirror Japan or Denmark’s ultra-low levels.
Adding to the pressure, foreign demand for U.S. Treasuries has weakened, challenging the dollar’s long-standing position as the world’s reserve currency. The greenback has fallen over 10% in the first half of 2025—its steepest decline since the early 1970s.
Meanwhile, global markets remain cautious ahead of the July 9 tariff deadline. Trump has expressed frustration with Japan over stalled trade talks, while Treasury Secretary Scott Bessent warned that higher tariffs could still be imposed despite ongoing negotiations.
