Geopolitical Tensions Rise

Geopolitical developments are adding to global market uncertainty, with reports of renewed Israeli airstrikes in Lebanon and the United States preparing fresh sanctions against Iran. Separately, reports that the Pentagon was asked to scale back joint military drills with South Korea are being monitored by market participants. fxstreet +1

US Dollar Weakens on Fed Outlook

The US Dollar has softened against commodity-linked currencies amid signs of a weaker US economy, which has dampened expectations for future Federal Reserve rate hikes. This shift in sentiment regarding the Fed's monetary policy path is influencing currency market dynamics. fxstreet

Japanese Economic Growth Disappoints

Economic data from Japan showed the country's Gross Domestic Product (GDP) expanded by 0.3% in the second quarter, falling short of market expectations for 0.5% growth. This represents a slowdown from the 0.5% growth rate recorded in the first quarter of the year. fxstreet