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Golden Ten Data reported on July 1 that Sean Callow, Senior FX Analyst at InTouch Capital Markets, stated that the most remarkable aspect of the yen's depreciation over the past few weeks has been the relative calm and orderliness of the exchange rate movement. He added that USD/JPY has shown a mild upward trend, without the kind of sharp volatility Japanese authorities usually cite as justification for intervention. Callow pointed out that declining oil prices should have provided some support for the yen, but interest rate factors remain the key driver dominating the market. Solid U.S. economic data has reinforced market expectations for a Federal Reserve rate hike this year; although the Bank of Japan took action in June, a 1% yield is not attractive for a currency trading near a 40-year low against the dollar.

```htmlGolden Ten Data reported on July 1 that Japan’s top foreign exchange official, Atsushi Mimura, stated that the foreign exchange market intervention undertaken two months ago to support the yen was a success and received support from some US officials. He said: "Judging from the subsequent market movements, I believe that intervention was clearly meaningful. To my knowledge, the US has never made any comments opposing our actions; instead, they actually issued some statements that were more supportive." Mimura made these remarks as the yen fell to its lowest level against the US dollar in 40 years, raising further inflation risks for Japan. Japan is a major energy importer, and more than half of its food is imported. He emphasized frequent communication with Washington and said: "Through phone calls and emails, I am in contact with US counterparts much more often than the outside world imagines."```

LME aluminum hit a four-month low as Gulf risk premiums continued to fade. The market is shifting from a geopolitical narrative to a tug-of-war between Middle East production resumption expectations and macroeconomic headwinds.