The US dollar index retains its recent growth, but market activity remains low in anticipation of the Fed's rate decision. The euro recorded its first monthly decline since December 2024, despite rising 0.15% to $1.1562 after falling earlier in the week. The Japanese yen strengthened against the background of the earthquake in the Kamchatka region, which caused a tsunami and evacuation on the east coast of Japan. Overall, stability remains in the currency markets as investors await key economic data and meetings of the central banks of the United States, Canada and Japan. Julien Lafargue, chief strategist at Barclays, noted that markets are following the statements of Fed Chairman Jerome Powell, especially in the context of possible disagreements within the committee. A rate cut in September remains likely, but much depends on the US employment report, which will be released on Friday. Investors are also watching the negotiations between the United States and China. After the meetings in Stockholm, the sides expressed their willingness to extend the 90-day trade truce.
