Dollar Hits One-Month High as Hawkish Fed Outlook Boosts Greenback 
Trump Questions USMCA Renewal as Trade Talks Continue 
US Stock Futures Jump on Reports of Preliminary US-Iran Peace Deal Despite Fed’s Hawkish Outlook 
Oil Prices Steady as U.S.-Iran Truce Uncertainty and Middle East Tensions Keep Markets on Edge 
Asian Currencies Stabilize as Dollar Holds Near Two-Month High After Fed Hawkish Signal 
Gold Prices Slide as Hawkish Fed and Strong Dollar Weigh on Bullion 
Oil Prices Drop as U.S.-Iran Peace Deal Eases Supply Concerns 
Italy’s Economy Outpaces Eurozone Peers as Investment Spending Fuels Growth 
France Faces Long Road to Economic Rebalancing as Weak Demand and High Rates Weigh, Says Citi 
German Industry Employment Falls to Lowest Level in a Decade 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
Japan Signals Readiness to Intervene as USD/JPY Nears 161 Amid Yen Weakness 
Canada, British Columbia Launch $5 Billion Infrastructure Partnership to Boost Housing, Transit, and Healthcare 
Russian Stocks End Flat as MOEX Index Hits New 52-Week Low 
Russia Stocks End Flat as MOEX Index Hits New 52-Week Low; Gold Falls and Oil Mixed 
Canada Imposes 10% Tariff on Canned Vegetable Imports to Protect Domestic Industry 
The Japanese yen fell on Thursday amid growing political uncertainty and stalled trade negotiations with the U.S., hitting a one-year low against the euro. Investors are increasingly nervous as polls suggest Prime Minister Shigeru Ishiba’s coalition could lose its upper house majority in Sunday’s election.
Trade tensions are adding pressure, with Japan yet to secure a deal to avoid U.S. tariffs ahead of an August 1 deadline. A 45-minute call between Japan’s top trade negotiator Ryosei Akazawa and U.S. Commerce Secretary Howard Lutnick ended without resolution. President Donald Trump recently hinted that 25% tariffs on Japanese imports may remain unless a deal is reached, compounding market jitters.
June export data showed a 0.5% year-on-year decline, marking the second consecutive monthly drop. The yen weakened 0.4% to 148.44 per dollar and 0.3% to 172.58 per euro. Meanwhile, Trump denied plans to fire Federal Reserve Chair Jerome Powell despite reports suggesting otherwise, helping the U.S. dollar recover modestly. The dollar index edged up 0.1% to 98.466.
Market experts say any move against Powell could destabilize faith in U.S. financial leadership. ANZ’s Mahjabeen Zaman warned that a dovish Fed could reignite inflation and weaken the dollar further, stressing the importance of Fed independence.
In other currency movements, the Australian dollar fell 0.6% to $0.6491 after disappointing jobs data pushed unemployment to its highest since late 2021. The New Zealand dollar also slipped 0.3% to $0.5929.
As global investors watch Japan’s election outcome and the U.S.-Japan tariff standoff, market volatility and pressure on the yen are expected to persist.
