Gold prices have seen increased volatility recently, slipping below $3,250 per ounce. This pullback comes as safe-haven demand eases amid progress in U.S.-China trade talks, a stronger U.S. dollar, and reduced geopolitical tensions. Investors should keep a close eye on upcoming U.S. inflation data and Federal Reserve policy signals, as these factors could mark the next turning point for gold prices.

Hong Kong stocks extended their rally on Monday, with the Hang Seng Index climbing over 212 points in the morning session to reach 23,079. Trading volume exceeded HK$130 billion, led by strong gains in the technology and electric vehicle sectors. Citigroup raised its year-end 2025 target for the Hang Seng Index to 25,000 points, citing improving U.S.-China relations as a key factor supporting valuation recovery. Meanwhile, CATL has kicked off its IPO process, which could become the largest new listing on the Hong Kong Stock Exchange this year. In the currency market, competition among banks for USD time deposit rates is heating up, drawing investor funds with attractive returns. Investors continue to monitor interest rate trends and sector outlooks for future positioning.

**U.S.-China Trade War Shows Signs of Easing**
Global markets reacted sharply after U.S. President Donald Trump proposed an 80% reduction in tariffs on Chinese goods. This unexpected move is widely seen as a strategic signal ahead of potential high-level negotiations between the two economic giants. Investors are closely watching how this could reshape global supply chains and shift momentum across financial markets.

The U.S. dollar has been weakening recently, even as U.S. equities and bonds have shown signs of recovery. This downward trend is being driven by narrowing interest rate differentials, capital outflows, and growing pressure from shifting monetary policies. Escalating U.S.-China trade tensions and the global reshuffling of foreign exchange reserves are adding to investor uncertainty, leading to divergent views on the dollar’s future.

In this article, we take a deep dive into the structural factors behind the dollar’s decline, explore the relative strength of the euro and commodity-linked currencies, and offer practical strategies for navigating today’s volatile currency market. Don’t miss out on the latest forex trends that could shape your investment outlook—read the full analysis now.

The Bank of England has announced an interest rate cut, coinciding with a newly signed trade agreement between the UK and the US—an unexpected combination that’s reshaping market expectations. Despite the rate drop, the British pound climbed higher, signaling a more optimistic outlook on the UK economy. Improved prospects for exports in key sectors such as automotive and steel and aluminum have boosted business confidence, suggesting potential momentum for economic recovery and trade growth.

U.S. Tariff Hikes Threaten Japan’s Inflation Outlook as BOJ Faces Tough Choices

Rising U.S. tariffs could deal a serious blow to Japan’s inflation expectations, according to Bank of Japan Governor Kazuo Ueda. He warns that increased export pressure may weaken Japanese companies’ ability to set prices, potentially undermining current efforts to stabilize inflation.

While Japan’s Consumer Price Index (CPI) has shown recent gains, growing external risks—such as protectionist trade measures and weakening global demand—cast uncertainty over the Bank of Japan’s policy direction. Investors are closely watching whether the central bank will delay its next rate hike, as fears of economic headwinds mount.

The Japanese yen’s future trajectory also remains in focus, especially as currency fluctuations and trade negotiations are expected to play a pivotal role in shaping the nation’s broader macroeconomic outlook. Analysts are keeping a close eye on developments to gauge any shifts in monetary policy or trade strategy.

U.S. Treasury Secretary Signals Trade Breakthrough, Boosting Stock Market

The U.S. stock market rallied after the Treasury Secretary hinted at positive developments in international trade. The United States is currently working with 17 countries on a phased trade agreement that addresses key issues such as tariffs, currency policies, and government subsidies. This progress has renewed investor confidence in the economic outlook. Market participants are now closely watching the implementation details and how ongoing U.S.-China trade negotiations will unfold.

The British pound is currently testing a critical resistance level at 1.3285 against the US dollar, with traders closely watching two key catalysts: the upcoming Federal Reserve interest rate decision and the release of UK PMI data. Either event could trigger a breakout in price action. If GBP/USD manages to break above this level in the short term, there’s potential for an extended rally toward 1.3443, possibly even 1.36. Investors should stay alert to shifts in monetary policy and technical signals to seize timely market opportunities.

This week, all eyes are on the U.S. Federal Reserve’s FOMC meeting, with markets closely watching for signals on the direction of interest rates. Despite signs of slowing economic growth, the labor market remains resilient, while inflationary pressures have yet to ease—making the Fed’s decision-making process more complex. Currency volatility is on the rise, with the U.S. dollar, euro, and Japanese yen all experiencing sharper swings. Investors should pay close attention to Chair Powell’s statements and any hints about future monetary policy moves.

High-level trade talks between the U.S. and China are set to resume, fueling optimism across global markets. At the same time, China has rolled out a series of interest rate cuts aimed at boosting economic momentum. These developments have sparked a strong rebound in Asian equities as investor confidence returns. Beyond easing tariff tensions, the upcoming negotiations could mark a pivotal moment with far-reaching implications for the global economic outlook.