The dollar index (DXY) rose by +0.21% on Friday, reaching a new 2.5-week high as stock market weakness increased demand for liquidity in the dollar. Concurrently, President Trump announced plans to raise tariffs on Canadian products to 35% effective August 1, up from 25%, which could exacerbate inflation pressures and impact Federal Reserve interest rate decisions.
Additionally, the Euro declined by -0.10% against the dollar, while USD/JPY gained by +0.82%, with the yen falling to a 2.5-week low. Japanese market concerns are heightened ahead of the July 20 upper house election, with fears of fiscal deterioration. Precious metals surged, with August gold up +1.15% and September silver climbing by +4.42%, driven by increased safe-haven demand following Trump’s tariff announcements.
