Marc Chandler - Breaking Down the Slumping Dollar, Global Rate Divergence, Yen Volatility Persists, Tariff Impacts

In this Daily Editorial, we are joined by Marc Chandler, Chief Market Strategist at Bannockburn Capital Markets and Editor of the Marc to Market website. Marc provides a detailed assessment of recent macroeconomic data, shifting central bank policy expectations, and key technical levels to watch across major global currencies.

Key Discussion Points:

• Cooling U.S. Economic Momentum: How a string of softer inflation readings, disappointing retail sales, and weaker employment figures are dragging down the U.S. economic surprise index.
• Technical Breakdown and Key Dollar Levels: A deep dive into whether the U.S. dollar index is setting up for a bear flag breakdown toward the 200-day moving average and May/June lows.
• Fed vs. BOJ Divergence: Why interest rate expectations are shifting toward a potential rate hike from the Bank of Japan while pricing in a pause or fewer hikes from the Federal Reserve.
• Yen Carry Trades and Foreign Inflows: Analysis of the historic volume of foreign assets purchased by Japanese investors following recent currency interventions.
• Fiscal Pressures and Rising Tariffs: The broader market implications of the record July U.S. budget deficit, ongoing tariff refunds, and upcoming trade policy deadlines.
• Key Catalysts for Next Week: What to expect from China’s economic releases, Japan’s Q2 GDP, global flash PMIs, and the implementation of new U.S. tariffs.

 

Click here to visit Marc’s site - Marc To Market - https://www.marctomarket.com/

 

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Investment disclaimer: This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security or investment product. Investing in equities, commodities, really everything involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.