The June 2025 edition of Market Services FX Spotlight features global market news and insights from RBC Investor Services’ Foreign Exchange (FX) Market Trading Desk.
Headlines
The current 90-day pause on tariffs for most countries is set to expire on July 9 with the major deals in focus being Canada, the EU, India, Japan, Mexico and China.
—Market Services FX Spotlight
- The US dollar lagged against peers, resulting in the dollar index falling to levels last seen in December of 2023 despite higher US yields and optimism surrounding potential trade deals.
- The US and the UK agreed on the first post-Liberation Day trade deal, decreasing tariff rates on auto and steel while offering clues into the format for future deals.
- The Bank of Japan held their target rate steady at 0.5% during their May meeting.
- The FOMC unanimously agreed to leave the benchmark rate unchanged at 4.25–4.5%.
- The BoE cut the bank rate by 25 bps—but the vote was split.
- US inflation figures continued to ease, with year-over-year figures coming in at 2.3% versus expectations of 2.4%.
- Trump had recommended 50% tariff rates to apply to EU goods starting June 1, but this deadline has since been extended to July 9.
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