US Dollar / Japanese Yen Trading (USDJPY)

Markets traded cautiously ahead of key inflation data and amid ongoing trade and geopolitical uncertainty. 

Markets remained cautious as a new 10% U.S. global tariff weighed on risk sentiment. The euro and pound stayed under pressure near recent lows, while the yen rebounded on renewed speculation around Bank of Japan tightening. 

Global markets remained cautious as a new 10% U.S. global tariff came into force, keeping trade uncertainty at the center of investor focus. 

Global markets are navigating a renewed wave of uncertainty as shifting U.S. trade policy and geopolitical tensions reshape risk sentiment. The Trump administration’s move to reintroduce a global tariff framework, starting at 10% with the option to raise it to 15%, has unsettled investors and prompted swift responses from major economies. 

Markets reacted sharply to renewed trade uncertainty after a US Supreme Court ruling overturned President Trump’s emergency tariff powers. 

The dollar index rose toward 98, set for a about 1% weekly gain as strong US data and hawkish Fed signals outweighed a wider trade deficit and softer housing data.

Markets traded cautiously as leadership uncertainty at the European Central Bank and firm US data shaped price action across assets. 

Markets traded with a mixed tone as currencies and metals reacted to central bank signals and fresh data. The euro held firm near $1.185, supported by the ECB’s comfort with currency strength and confidence that inflation is on track, alongside expectations of a less dovish policy mix later this year. 

Global markets opened cautiously in thin trading, with the euro holding near $1.185 after the ECB signaled comfort with its strength, sterling steady around $1.36 ahead of key UK data, and the yen firming toward 153 on BoJ rate-hike speculation. 

Global markets started the week cautiously as major currencies and metals consolidated after recent volatility. The dollar index held just below 97 in thin holiday trade after softer US inflation (2.4% y/y, 0.2% m/m) raised rate-cut expectations, even as strong payrolls and lower unemployment signaled a stabilizing labor market.