As of July 22, the U.S. dollar held a stable position in forex markets, even after an earlier dip, as traders awaited clarity on potential new tariffs. A deadline of August 1 for trade agreements puts pressure on countries like Japan and the EU.
The Japanese yen retained most of its earlier gains, despite Japan’s ruling coalition losing upper house control in recent elections, injecting political uncertainty. Meanwhile, the euro, pound, Australian, and New Zealand dollars edged downward. Treasury Secretary Scott Bessent emphasized quality over speed in trade deals—which may offer some room for negotiation.
Investors remain cautious, with the specter of political interference in the Federal Reserve, especially following President Trump’s remarks about Chair Powell. Still, analysts posit that a rebound in dollar strength is likely should U.S. data remain strong and policy stay consistent.
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