The dollar index (DXY) rose by 0.10% today, bolstered by reduced global trade tensions following a recent trade agreement between the US and Japan. Meanwhile, US existing home sales for June fell 2.7% month-over-month to 3.93 million, a 9-month low, worse than the expected decline of 0.7% to 4.00 million.
President Trump announced the trade deal with Japan that will impose 15% tariffs on US imports from Japan, a reduction from a previously suggested 25%. This deal includes Japan purchasing 100 Boeing aircraft and increasing US rice imports by 75%. Additionally, the Bank of Japan’s Deputy Governor indicated that the trade agreement brings the BOJ closer to raising interest rates.
In foreign exchange, the euro (EUR/USD) fell by 0.24%, facing pressure from a stronger dollar and potential EU tariffs on $117 billion worth of US goods. The yen (USD/JPY) decreased by 0.05%, despite initially climbing to a 1.5-week high following the trade agreement.
