Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility 
Asian Markets Slip as AI Spending Fears Shake Tech, Wall Street Futures Rebound 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure 
U.S. Stock Futures Slide as Tech Rout Deepens on Amazon Capex Shock 
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks 
Australia’s December Trade Surplus Expands but Falls Short of Expectations 
Gold and Silver Prices Rebound After Volatile Week Triggered by Fed Nomination 
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
The U.S. dollar began the first full trading week of the new year with modest gains, strengthening against major currencies as investors focused on upcoming economic data and Federal Reserve policy expectations. Early Monday trading saw the greenback climb to a three-and-a-half-week high against the euro, while also posting gains versus the British pound and the Japanese yen.
Although overall currency movements remained relatively contained, global market sentiment was influenced by heightened geopolitical risks. Investors remained cautious following reports of a dramatic U.S. operation in Venezuela that led to the capture of President Nicolas Maduro, who now faces drug-trafficking charges in New York. This unexpected development added an element of uncertainty to financial markets, potentially supporting safe-haven demand for the dollar.
Market attention is also firmly fixed on the U.S. economic calendar, which could play a decisive role in shaping Federal Reserve policy this year. Key macroeconomic indicators are scheduled throughout the week, starting with the ISM manufacturing survey and concluding with the closely watched monthly non-farm payrolls report on Friday. These data points are expected to provide fresh insight into the strength of the U.S. economy and the future direction of interest rates.
In early trading, the dollar rose 0.1% to around $1.1705 per euro, after briefly touching $1.170025, its strongest level since mid-December. The U.S. currency also advanced 0.1% against sterling to approximately $1.34495 per pound and edged up to 156.90 yen versus the Japanese currency.
Despite the dollar’s firm start, interest rate expectations remain a key variable. Futures markets currently price in two U.S. interest rate cuts this year, contrasting with the Federal Reserve’s own projections, which indicate just one cut amid a divided policymaking committee.
Adding to market focus, investors are closely watching the White House as President Donald Trump prepares to announce his choice for the next Federal Reserve chair. With Jerome Powell’s term ending in May, Trump has indicated he will make his decision this month, signaling a preference for a successor who strongly favors significantly lower interest rates. This looming leadership change could further influence dollar trends and broader financial markets in the months ahead.
