Europe Asia News

The latest job openings data and the January employment report scheduled for release this week were postponed, providing no fresh signal on the state of the U.S. labor market. U.S. President Donald Trump signed a $1.2 trillion budget to end the partial shutdown, but funding for the Department of Homeland Security remains unresolved.

Meanwhile, the dollar gained in recent sessions after Trump nominated Kevin Warsh as the next chair of the Federal Reserve (Fed). Warsh is seen as less dovish than other candidates. On the other hand, strong U.S. manufacturing data eased expectations for rapid rate cuts. Markets expect the Fed could cut rates twice this year, likely in June and October.

Elsewhere, the Australian dollar rose to around $0.703 on Wednesday, extending the prior session’s hawkish-policy-driven gains, with an upbeat services PMI also providing support as markets anticipate further rate hikes.

The central bank raised the cash rate at its February meeting for the first time in two years, citing strong economic growth and a persistent inflation outlook. As the tightening cycle begins, investors lifted the probability of a May hike to 80% and now see roughly 40 basis points of additional tightening priced for 2026.