RBC forecasts a medium-term decline in USD/JPY to 133, driven by slowing US rate hikes, BoJ’s gradual policy normalization, and an overvalued dollar. As Fed and BoJ paths diverge, expect increased volatility and bearish pressure on the USD against the yen. #Forex #USDJPY
USD/CAD surged to a two-month high amid renewed trade tensions sparked by Trump’s proposed tariffs on imports, including a 60% levy on Chinese goods. With the Fed maintaining hawkish signals and the Bank of Canada leaning toward easing, plus falling crude prices pressuring the loonie, markets favor the U.S. dollar as a safe haven. Expect volatility to persist as geopolitical risks dominate.
EUR/USD slipped below 1.1700 as escalating US-China trade tariff concerns bolstered demand for the US dollar. Investors are turning to the greenback amid growing uncertainty, with safe-haven flows pushing the dollar index to a two-week high. Technical indicators suggest bearish momentum ahead.
GBP/USD faces uncertainty ahead of crucial UK and US inflation reports. Persistent inflation and central bank policy signals from the Fed and BoE will likely drive volatility. Watch for CPI data and market reactions to shape the next move in this key currency pair. More details: invezz.com/news/2025/07/13/gbp-usd-forecast-ahead-of-uk-and-us-inflation-data/
The US dollar gained strength after stronger-than-expected June producer price index (PPI) data showed persistent inflation pressures, offsetting earlier signs of easing from consumer price index (CPI) reports. With PPI rising 0.1% unexpectedly, markets are now weighing the Federal Reserve’s timing for interest rate cuts, leading to increased demand for the dollar. Investors will closely watch upcoming consumer sentiment figures for further clues on economic momentum and monetary policy direction.
RBC forecasts USD/JPY will drop to around 133 by mid-2025, signaling a medium-term decline as Fed rate cuts loom, U.S. growth slows, and the yen strengthens amid BOJ policy shifts. Investors should expect increased volatility as this currency dynamic evolves. #Forex #USDJPY
Former President Trump’s renewed tariff threats have stirred fresh trade tensions, putting USD/CAD in focus this week. While the loonie gains support from rising oil prices and strong Canadian jobs data, uncertainty lingers over potential trade disruptions. Watch for key U.S. and Canadian economic releases that may reshape the outlook amid geopolitical risks.
EUR/USD slipped below 1.1700 as escalating trade tensions boosted demand for the US dollar, pushing it to a two-week high. Renewed tariff concerns are driving risk aversion, strengthening the greenback while challenging the euro amid subdued Eurozone growth and dovish ECB signals.
GBP/USD remains range-bound as markets await key UK and US inflation data this week. BoE cautious amid sticky inflation and wage growth, while Fed outlook hinges on cooling price pressures. A surprise in either print could drive volatility—watch 1.2750–1.2800 closely for the next directional move. #Forex #GBPUSD #Inflation
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