| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 06:00 | Germany | Factory Orders s.a. (MoM) | May | 1.6% | -0.1% | -1.4% |
| 06:45 | France | Industrial Production, m/m | May | -1.4% | 0.3% | -0.5% |
During today's Asian trading, the US dollar declined moderately against major currencies as markets weighed the impact of President Trump’s massive spending and tax cut package and uncertainty around trade talks.
The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) fell by 0.20% to 96.93.
On Thursday, the dollar rallied after U.S. Labor Department data showed nonfarm payrolls rose by 147,000 in June, well above forecasts of 110,000. The stronger labor market pushed traders to scale back expectations for imminent Federal Reserve rate cuts.
Late Thursday, the House narrowly approved Trump’s 869-page spending bill, estimated to add $3.4 trillion to the national debt. While investors are concerned about fiscal sustainability, they also welcomed signs the economy remains resilient.
Attention now turns to the July 9 deadline when new tariffs on countries without trade deals, including Japan and the EU, are due to take effect. Trump said letters specifying tariff rates would be sent out on Friday, signaling a shift away from earlier promises to finalize multiple individual agreements.
The uncertainty over trade negotiations pressured equities in export-driven Asia and weighed on the dollar against the yen and euro. The dollar slipped 0.38% to 144.39 yen and fell 0.15% versus the Swiss franc. The euro edged up to $1.1778 and sterling climbed to $1.3670.
While some officials expect further deals with nations like India and Vietnam, talks with Japan and South Korea appear to have stalled. Analysts noted that sweeping tariffs on major economies could deepen dollar weakness if no agreements are reached by the deadline.