The dollar index (DXY) is down by 0.54% today due to reduced liquidity demand resulting from stronger stock market performance and lower T-note yields. Meanwhile, June leading economic indicators in the U.S. fell by 0.3% month-over-month, aligning with expectations.
The euro (EUR/USD) has risen by 0.47% as a consequence of the weaker dollar and expectations that the European Central Bank (ECB) is nearing the end of its easing cycle. This is contrasted by President Trump’s push for a minimum tariff on EU goods, which could negatively impact the Eurozone economy. Additionally, Federal funds futures indicate a 5% chance of a 25 basis point rate cut at the July FOMC meeting, increasing to 58% for the September meeting.
The Japanese yen (USD/JPY) is down by 0.96% following the ruling Liberal Democratic Party’s loss of majority in Japan’s upper house elections, securing only 47 seats. This situation raises concerns about potential fiscal deterioration in Japan due to increased spending and tax cuts. In precious metals, gold is up by $53.50 (1.59%) and silver by $0.821 (2.13%), primarily driven by dollar weakness and global trade tensions.
