Ahead:
Early FX: Dollar Slips on Trump Rate Talk; Yen Gains Despite Weak Japan Data; China PMIs Mixed; Canada Scraps Tech TaxDetail:
Opening ranges in early FX trade ahead of the Tokyo session saw the US dollar under pressure following weekend comments from former President Trump, which suggested further downside debasement risk for the currency:
“I don’t want to have to pay for 10 years debt at a higher rate.” “We’re going to get somebody into the Fed who’s going to be able to lower the rate.”EUR/USD opened with a small gap higher near 1.1735 before quickly filling it and then pushing to a fresh high, ultimately settling into quiet, range-bound trade. Other major currencies followed a similar pattern, showing initial strength against the dollar before flattening out.
USD/JPY was an exception, dropping to around 144.10 after some early swings. This came despite a mixed Japanese industrial production report. May output rose 0.5% m/m — the best since February — but fell far short of the +3.5% expected. Year-on-year, output declined -1.8% versus a forecast +1.6% gain. Weak production forecasts for the coming months reflect the drag from US tariffs. While trade talks between Japan and the US are likely to continue for some time, Japan’s Nikkei Stock Average hit an 11-month high.
From China, official PMIs for June showed modest improvement. The manufacturing PMI rose from May but remained in contraction for the third straight month, weighed down by weak domestic demand and US trade frictions. The non-manufacturing PMI climbed further into expansion. The National Bureau of Statistics noted accelerating production and improving market demand, though household consumption remains subdued.
In North America, Canada announced it will withdraw its planned digital services tax on US tech companies in a move to advance broader trade talks with the US. The decision, described as made “in anticipation” of a comprehensive agreement, came as Canada’s Carney and President Trump agreed to resume negotiations with the aim of reaching a deal by July 21. The Canadian dollar rose on the headlines.
US equity index futures traded higher, while gold reversed earlier losses to finish the session stronger.
This article was written by Eamonn Sheridan at www.forexlive.com. Read More Details
Finally We wish PressBee provided you with enough information of ( ForexLive Asia-Pacific FX news wrap: Canada axes digital services tax )
Also on site :
- Eva Longoria Sports Pink String Bikini for Beach Day with Husband and Son in Spain
- PHOTOS: Denver Pride Parade 2025
- Watch Morgan Wallen Bring Out Surprise Guest For Sizzling Duet During Night One At Camp Randall Stadium