Japan Core Inflation Seen Rising in June, Strengthening BOJ Rate Hike Outlook 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Gold Prices Head for Biggest Weekly Loss Since June as Fed Rate Outlook Weighs 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Nikkei Plunges 5% as AI Stock Selloff Spreads Across Asia 
Oil Prices Set for Weekly Surge as U.S.-Iran Conflict Fuels Supply Fears 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
Malaysia Q2 Economy Grows 5.8%, Beating Forecasts on Strong Tech Exports and Domestic Demand 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
AI Chip Stocks Face Valuation Pressure as Investors Shift Toward Big Tech and Software 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
The Mexican peso and Canadian dollar weakened significantly on Sunday as concerns mounted over U.S. President Donald Trump's escalating tariff threats. The peso took a sharper hit, with the USD/MXN exchange rate climbing 1.1% to 20.4949 pesos per dollar. The Canadian dollar also softened, with USD/CAD rising 0.1% to 1.4381.
The U.S. dollar, meanwhile, strengthened by 0.2% against a basket of currencies, recovering from steep losses last week. However, fears of new trade barriers weighed heavily on North American currencies after Trump imposed a 25% tariff on all imports from Colombia. The move came as retaliation against Colombia for denying landing rights to two U.S. military planes carrying deported migrants.
Trump warned that tariffs on Colombia could rise to 50% by next week if the country fails to comply with U.S. demands, further straining bilateral relations. These developments heightened market fears that similar tariffs could be levied against Mexico and Canada, targeting issues like immigration and perceived unfair trade practices. Trump has previously threatened tariffs of up to 25% on both nations and floated the possibility of a 10% tariff on imports from China, which could be enacted as early as February.
The prospect of increased trade tensions underscores the risks to global markets, with the peso and Canadian dollar particularly vulnerable. Investors remain cautious amid uncertainty over Trump's next steps, fueling volatility in currency markets.
The escalating tariff measures and strained diplomatic ties could have broader economic implications, impacting trade dynamics across the Americas and beyond.
