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Oil Prices Drop as Middle East Supply Recovery Eases Market Concerns 
Wall Street Ends Lower as AI Stocks Drag Markets, Fed Rate Outlook Shifts 
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Asian Currencies Stay Range-Bound as Investors Eye China Data, RBNZ Outlook and U.S.-Iran Ceasefire 
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World Bank Approves $1.1 Billion Emergency Funding for Bangladesh Amid Food and Energy Price Pressures 
Iran Attack in Strait of Hormuz Pushes Oil Prices Higher 
Gold Price Ends Lower for Fourth Week Despite Rebound as Fed Rate Hike Bets Strengthen 
Asian Stocks Slip as US-Iran Ceasefire Hopes Lift Oil, Dollar Strength Persists 
Oil Prices Rise as US-Iran Tensions Threaten Strait of Hormuz Oil Shipments 
Gold Price Falls as Fed Rate Hike Fears and U.S.-Iran Tensions Weigh on Bullion 
US Dollar Stable as Market Awaits US Inflation and Fed Insights
The US dollar opened cautiously on Monday, reflecting market anticipation for upcoming US inflation data and insights from Federal Reserve speakers. Meanwhile, China’s recent stimulus package has left the yuan subdued, impacting the currencies of key trading partners.
China’s Economic Signals Raise Concerns
Data released over the weekend highlighted China’s economic struggles, with consumer price growth at a four-month low and producer price deflation worsening. Retail sales and industrial output reports, expected this Friday, will reveal whether Beijing’s stimulus efforts are affecting domestic demand. Underwhelming results from these measures saw the Australian and New Zealand dollars decline on Friday, as both countries depend heavily on Chinese exports.
Currency Movements and Fed Influence
The dollar hovered near 7.1970 yuan and could soon test the 7.2000 mark. In limited US trading due to a bond market holiday, the dollar rose by 0.1% against the yen, reaching 152.90. The dollar index saw a slight uptick, sitting at 105.00 after a 0.6% gain last week, with the euro stable at $1.0711, facing resistance around $1.0667.
European and US Policy Impact
The euro is under pressure amid Germany’s political uncertainties, as Chancellor Olaf Scholz considers a confidence vote that could lead to early elections. Market attention is also on the US Federal Reserve, with Chair Jerome Powell and other officials scheduled to speak this week. Investors are watching for signals on future rate adjustments as inflation data could influence Fed policy in December.
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