Citigroup Inc. $C has revised its forecast for interest rate cuts by the U.S. Federal Reserve (Fed), pushing the timing of monetary easing from July to September 2025. The adjustment follows a stronger-than-expected May jobs report, which signaled resilient labor market conditions despite broader signs of economic cooling. The brokerage now anticipates three 25 basis point (bps) rate cuts — totaling 75 bps — in September, October, and December, down from its previous forecast of four cuts totaling 100 bps.
A strategic shift is underway among Japanese investors as higher domestic yields and a gradually normalizing monetary policy weaken the appeal of U.S. assets. Nomura Holdings, Inc. $8604.T estimates that the Japanese yen (JPY) could strengthen by roughly 6% against the U.S. dollar (USD) over the coming months, pushing the $USDJPY pair from 145 to 136 by the end of Q3.
The U.S. dollar (USD) is heading for its first weekly loss in nearly a month, pressured by a combination of underwhelming domestic economic data and a lack of progress in critical trade negotiations. Investor focus has turned sharply toward the upcoming U.S. nonfarm payrolls (NFP) report, expected later Friday, which could significantly influence expectations for Federal Reserve policy. Market sentiment remains fragile as concerns mount over the broader implications of the Trump administration’s tariff strategy and its effects on growth.
Asian equity markets experienced gains as the US Dollar (USD) weakened, reflecting investor caution ahead of the European Central Bank's (ECB) updated economic outlook. This shift in sentiment follows recent weak US employment and services sector data, raising concerns over the health of the world's largest economy amid ongoing trade tensions and tariff uncertainties.
On Wednesday, the U.S. dollar (USD) retreated as investors exercised caution ahead of a key U.S. employment report and ongoing developments in tariff negotiations led by former President Donald Trump. The weakening of the greenback reflects a tense market atmosphere driven by geopolitical uncertainty and protectionist economic policies.
Gold prices retreated on Tuesday, falling nearly 1% from a four-week high as the U.S. dollar (USD) gained strength and traders exercised caution ahead of a potential phone call between former U.S. President Donald Trump and Chinese President Xi Jinping. The renewed geopolitical focus, alongside currency dynamics, pressured the precious metal, traditionally viewed as a safe-haven asset during periods of uncertainty.
The Indian rupee (INR) is projected to open marginally weaker against the US dollar (USD) on Tuesday, trading within a constrained band, as a lack of directional cues from global markets combines with a broadly stable greenback. Despite upward momentum in regional Asian currencies, the rupee appears less responsive due to underlying structural and macroeconomic factors.
Amid growing instability in global markets triggered by escalating trade tariffs and monetary policy divergence, Arrowpoint Investment Partners, a Singapore-based multi-strategy hedge fund, has successfully capitalized on pricing inefficiencies across equities, foreign exchange (FX), and fixed income. With assets under management (AUM) totaling USD 1.1 billion, the firm reported its strongest performance to date in May 2025, driven by sophisticated arbitrage strategies and tactical positioning.
Australia’s Fair Work Commission (FWC) has announced a 3.5% increase to the national minimum wage, effective from July 1, 2025. The decision directly impacts approximately 2.6 million of the country's lowest-paid workers and comes at a time when inflationary pressures are receding, giving policymakers room to support real income growth without reigniting price instability.
China's manufacturing sector contracted for the first time in eight months in May, signaling growing pressure from external trade dynamics—most notably U.S. tariff policies and a global demand slowdown. According to the Caixin/S&P Global Manufacturing Purchasing Managers’ Index (PMI), activity dropped to 48.3, falling below the neutral 50.0 mark and surprising analysts who had expected continued expansion.
Four months into President Donald Trump’s second term, financial markets are once again adjusting to a policy environment characterized by populist slogans, unpredictable policy shifts, and renewed geopolitical tension. Traders, drawing inspiration from Trump’s affinity for branded acronyms like MAGA (“Make America Great Again”), DOGE (which he once referenced during crypto surges), and the newly coined MAHA (“Make America Harsh Again”), have adopted a series of market acronyms reflecting the risks and strategies in the current climate.
Manufacturing output across Asia declined in May 2025, underscoring renewed challenges in export-dependent economies. Recent private sector surveys revealed that industrial activity fell for a second straight month, driven by weakening demand from China and escalating tariff-related pressures from the United States. With official Chinese data confirming a sustained downturn and manufacturing PMIs in Japan and South Korea remaining in contraction territory, concerns are growing about the durability of the region’s industrial recovery.
