Tokyo, Japan – The Federal Reserve remains confident in its plans to start an easing cycle at the next meeting in September, despite recent market fluctuations. While the dollar is strong against most G10 currencies, the Norwegian krone stands out as the strongest performer. On the other hand, the yen and Swiss franc remain resilient in the midst of market uncertainties.

In Japan, the dollar fell to a new low, impacting the performance of Japanese stocks. However, other Asian markets saw gains, with Taiwan and South Korea leading the way. European markets experienced some retracement after previous gains, while US index futures showed a positive trend. The bond markets across Asia-Pacific and Europe displayed mixed movements, with US Treasury yields falling to their lowest levels in months.

The focus shifts to economic data from Japan, including the BOJ’s recent interventions and Japanese investors’ behavior in the bond market. In Australia, a trade surplus was reported, but concerns arise as exports decline while imports increase. Meanwhile, China’s manufacturing PMI dropped below the critical 50 level for the first time in months.

In Europe, all eyes are on the Bank of England meeting amid speculations of a rate cut. The euro and sterling face challenges as they navigate through market fluctuations and economic uncertainties. Across the Atlantic in America, the Federal Reserve has maintained a cautious stance, awaiting further data before making significant policy changes. US auto sales are expected to rebound, while Canada and Mexico monitor their respective manufacturing sectors.

In currency markets, the greenback faces challenges against the yen and other currencies, while the Canadian dollar and Mexican peso show resilience. Overall, global markets are navigating through a period of uncertainty, with investors closely monitoring central bank decisions and economic indicators for clues about the future direction of the economy.