The Richmond Fed Manufacturing Index met the expected value of -7 in June. This index helps assess how the manufacturing sector is performing in the U.S. The AUD/USD pair has remained steady around 0.6500 as traders wait for Australia’s monthly inflation numbers. A ceasefire between Iran and Israel has made the USD less appealing as a safe-haven asset, while comments from Powell have influenced market expectations.

Analyzing USD/JPY Pair Movement

The USD/JPY pair has dropped to a one-week low, going below the 145.00 mark. Strong recent Services PPI data from Japan supports the idea that the Bank of Japan may consider more rate hikes, which is positive for the JPY. Gold prices have shown a small increase due to a weaker USD but have limited gains. The effects of the Israel-Iran ceasefire and Powell’s comments could influence future price shifts. Circle’s stock fell by 15% due to concerns over declining interest rates and increased competition. The possibility of closing the Strait of Hormuz amid the Israel-Iran conflict raises further worries for the market. A detailed list of top brokers for trading EUR/USD in 2025 offers information on spreads, execution speeds, and trading platforms to help traders navigate the market.

Volatility and Strategic Considerations

Overall, market sentiment is cautious. The Richmond Fed data of -7 aligns with a slowdown in U.S. regional manufacturing activity. While this is expected, it reinforces the idea that parts of the U.S. economy are slowing, even if overall GDP appears strong. Traders should adjust positions away from sectors closely linked to industrial growth. The AUD/USD pair hovering around the 0.6500 level indicates that traders are pausing before the Australian inflation figures are released. Powell’s comments on tighter U.S. monetary policy are being weighed against reduced tensions in the Middle East. The ceasefire has lowered the USD’s usual safe-haven status, adding importance to upcoming inflation data and other domestic issues. The dip in USD/JPY below 145.00 illustrates the effect of Japan’s recent Services PPI data, which indicates that inflation pressures may last longer than previously thought. This could lead the Bank of Japan to justify moving away from ultra-loose policies. For those involved in rate-sensitive instruments, it suggests a bearish outlook for this pair unless U.S. data surprises positively. Gold is benefiting slightly from a weaker dollar, though its gains are limited compared to recent increases. The performance of gold relies less on inflation and more on the perception of geopolitical changes and interest rate forecasts. If geopolitical calm continues, gold may find it hard to reach recent highs, especially if real yields remain high. On the equity front, Circle’s 15% stock decline contrasts with the resilience seen in tech and fintech sectors lately. This drop reflects worries about forward rates affecting future earnings and sustained margin pressure due to rising competition in the tokenization and fintech sectors. The Strait of Hormuz remains a risky area. Even with a ceasefire in place, any escalation could quickly disrupt energy markets. In this environment, energy derivatives and transport-sensitive assets may deserve more attention. Finally, while not directly affecting the market, the categorization of brokers and platforms for 2025 indicates changes in how retail and institutional traders access EUR/USD. With spreads and execution speed becoming more critical, choosing the right trading platform is essential. We’re observing a growing divide between platforms that adapt quickly and those that lag behind. In summary, volatility remains low but could increase. Strategies should focus on identifying clear opportunities, especially where positioning is light and technical levels indicate strong entry or stop zones. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now