Global Markets Mixed on Trade Hopes and Fed Rate Cut Expectations

Global forex markets displayed mixed sentiment as positive US-China trade developments and anticipated Federal Reserve rate cuts influenced currency flows. The US dollar showed varied performance against major pairs, with traders positioning for potential monetary policy shifts. Strong expectations for Fed rate cuts have emerged amid concerns about economic growth, while the anticipated end to the US government shutdown provided some market relief. The improved US-China trade dialogue reduced safe-haven demand, impacting traditional risk-off currencies like the Japanese yen and Swiss franc. Currency markets remain sensitive to upcoming economic data releases and central bank communications. Traders should monitor key support and resistance levels as volatility may increase with shifting monetary policy expectations and evolving geopolitical developments.