Week opens with cautious optimism

Asian Markets

Chinese markets opened the week on a cautiously positive note after several ministries, led by the National Development and Reform Commission, pledged new measures to stimulate growth and employment.
However, investors remain wary as the announcements lacked concrete timelines or funding details, keeping broader enthusiasm contained.

Commodities

Gold prices slipped from recent highs, retreating from around $3,500 to near $3,280 per ounce.
The metal had surged as a safe-haven during heightened US-China tensions and weakening dollar sentiment.
With signs of potential trade de-escalation now emerging, demand for safety has softened.
Attention shifts sharply toward upcoming US data, particularly Friday’s labor market report, which could either halt or deepen gold’s current correction depending on the strength of the dollar.

Currencies

• EUR/USD:
  The euro remains stable near 1.1360, supported by bullish momentum above the 100-day EMA.
  Traders are hesitant to commit strongly as conflicting updates from US-China trade discussions cloud the outlook.
  

USD/JPY:
The Japanese yen strengthens slightly at the start of the week, drawing some safe-haven flows.
Yet, expectations that the Bank of Japan may slow its tightening cycle could limit further gains.
Overall, divergent policy paths between the Fed and BoJ keep the yen's upside capped for now.