By Leika Kihara (Reuters) -Asia may see its resilience to U.S. tariffs challenged if a rally in the dollar and a rebound in low interest rates lead to tighter financial conditions, a senior International Monetary Fund official told Reuters. If the U.S. Federal Reserve continues to cut interest rates, a subsequent dollar decline could allow Asian central banks to loosen monetary policy and support their economies without worrying about the risk of capital outflows, said Krishna Srinivasan, director of the ...

Core Viewpoint - A productivity-driven increase in real interest rates is identified as the most powerful driver for a currency [1] Group 1 - The relationship between productivity and real interest rates is emphasized as a significant factor influencing currency strength [1]

Currency Market - The dollar index (DXY00) is up by +0.44% at a 1-week high, driven by the resignation of French Prime Minister Lecornu, which negatively impacted the euro [1] - The ongoing US government shutdown, now in its second week, is bearish for the dollar, with potential negative implications for GDP growth [2] - The USD/JPY has increased sharply by +1.72%, with the yen falling to a 2-month low following the election of pro-stimulus lawmaker Sanae Takaichi as the likely new Japanese prime minister [6] Eurozone Economic Indicators - The EUR/USD is down by -0.37%, reaching a 1-week low due to political turmoil in France after Prime Minister Lecornu's resignation [4] - The Eurozone's October Sentix investor confidence index rose by +3.8 to -5.4, exceeding expectations of -7.7, providing some support for the euro [5] - Eurozone August retail sales increased by +0.1% month-over-month, aligning with expectations [4] Precious Metals Market - December gold is up by +64.60 (+1.65%), reaching a new contract high, while nearest-futures gold hit an all-time high of $3,944.00 per troy ounce [7] - December silver is also up by +0.585 (+1.22%), with nearest-futures silver achieving a 14-year high [7]

Is the market starting to wake up to what could be coming when it comes to trade. Good morning. Uh good morning, Nathan.Well, I I would say uh here we go again. Uh you know, like we we kind of know the pattern now. I mean, this is President Trump's style.He'll he goes hard and then he you know, he doesn't uh back off completely, but it's a it's a back and forth. And that's his negotiating style. You know, it's the old BATNA where you put your stake in the ground and aggressively and then you try to negotiat ...