Markets On Alert: Fed Fractures, Tariff Progress, And The Big Jobs Report Loom

The event risk in the trading week ahead hits us from all angles – Tariff/trade headlines have already started to come in liberally, while market players also navigate tier 1 economic data, a deluge of US and EU corporate earnings, DM & EM central bank meetings and the US Treasury refunding announcement (QRA).

Market Navigator: Week of 28 July 2025

US-Japan trade accord reduces tariffs while equity markets advance on strong earnings, with four Magnificent Seven companies reporting ahead. Markets await Fed and BOJ policy guidance.

Volatility Looms as USD/JPY Trades into Macro Crossfire

This week is shaping up to be a wild ride for USD/JPY traders with major U.S. economic data, rate decisions from the Fed and Bank of Japan, trade talks, tech earnings, and an update on U.S. borrowing needs fuelling volatility. Ahead of this convergence of event risk, price and momentum signals favour further USD/JPY upside. Whether that plays out is another story, especially given how quickly the macro landscape can shift in 2025.

Lower Global Trade Uncertainty Supports Risk Appetite

The reduction in trade uncertainty between the US and EU increases risk appetite. The Fed may ease monetary policy sooner, leading to a fall in the USD and positive outlook for stock indices.