- The Japanese Yen (JPY) rises for a fourth day
- US-Japan trade deal was agreed on Tuesday
- The US Dollar (USD) falls against its major peers
- US-EU trade deal could be agreed
The US dollar Japanese yen (USD/JPY) exchange rate is falling for a fourth straight session. The pair fell 0.43% in the previous session, settling on Tuesday at 146.76. At 20:30 UTC, USD/JPY is -0.05% lower at 146.57 and trades in a range of 146.11 to 147.21.
The Japanese yen is strengthening as the market continues to digest the weekend elections and on reports that Prime Minister Ishiba could resign next month following the disappointing upper house election defeat.
While Ishiba denied such reports, saying they are completely unfounded, the yen has gained on political drivers as the PM must be feeling some pressure to resign.
The US and Japan agreed on a trade deal, reducing tariffs on Japanese imports to the US to 15%.
Attention is turning to Japanese manufacturing PMI data, which is expected to show that activity remained stagnant at 50.2, up from 50.1 in June.
The US dollar is falling across the board. The US dollar index, which measures the USD against a basket of peers, is falling by 0.18% to 97.22, marking a fourth day of losses.
The US dollar edged modestly lower against its major peers as investors digest the latest trade deal developments, following Trump’s announcement of a trade deal with Japan and reports that the EU and the US are close to reaching a trade agreement.
The US dollar has been one of the largest losers among major currencies since Trump announced tariffs against its major trading partners on April 2nd. Weakness persisted even as those levies were suspended to facilitate negotiation; however, the US dollar steadied in July.
The market is looking to the August 1 deadline for the tariff deals that remain in place for many countries.
The US economic calendar is quiet today. Attention will turn to PMI data tomorrow, which is considered a good gauge for business activity.
.
