USD down, stocks rising, Yen hits pause

A rebound in stocks for the tech sector seems to be leaving the Buck behind as less traders hold onto it as a safe haven asset.

Yesterday’s session did not materialize into anything significant as market participants settled from a very volatile July that saw the U.S. Dollar decline by around 1.5% overall, per the Bloomberg Dollar Spot Index. Hope remains that countries involved in the armed conflict can succeed in reaching an agreement that puts damage to energy facilities behind. Oil prices have reflected that sentiment with Brent Crude prices dropping by 4.7% throughout Monday.

It is worth noting that Copper prices rose to their highest in two months as investors and analysts fear a potential import tariff decision from the White House. We shall see if economic indicators move the needle much today as we get the release of June Factory Order, JOLTS Job Openings as well as Durable Goods Orders all out at 10AM. Tomorrow, we get some labor figures and Purchasing Managers Indices.

What to Watch This Week…

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The complete Economic Calendar can be found here.

JPY

The Japanese Yen finally hit the brakes on appreciation after reaching its strongest level against the U.S. Dollar since May 11th. U.S. Secretary Scott Bessent praised the diligence behind the intervention and spoke favorably of conducting these rounds of intervention in cooperation with Japan for as long as needed. Nevertheless, analysts feel the reprieve can only be short-term, expensive, and can easily fade as Japan’s economy fails to impress. More importantly, there are other tools to defend the Yen, but traders feel now there will not be similar effect as other operations take place, meaning Yen is still volatile and could depreciate quickly.

EUR

The Euro is hovering around its best levels over the Buck since mid-June as a bit of resilience in productivity is aiding perception. S&P Global Euro-zone Service and Composite Purchasing Managers Indices will be out tomorrow and could complete a picture of solid economic activity following Manufacturing readings that told of expansion in July. The 1.3% jump in value through July was the best performance for the shared currency since April.