Amazon and Apple both reported strong Q3 earnings after the U.S. close on Thursday, easily beating analyst expectations and providing solid forward guidance, reinforcing confidence in the resilience of Big Tech.

Shortly after the earnings reports, President Trump announced a 35% tariff on Canadian goods, effective August 1. While the headline figure is eye-catching, the impact may be more modest: goods traded under the USMCA agreement remain exempt, as do energy products like oil. Still, the move is controversial given the U.S. already runs a manufacturing trade surplus with Canada, raising questions about the strategic rationale behind the hike.

A broader list of new tariffs targeting other countries quickly followed. Among them, a staggering 39% levy on Swiss goods, which weighed on the Swiss franc. The full list of affected countries and products is due to take effect in seven days.

From Japan, Finance Minister Shunichi Kato ramped up verbal intervention, criticising yen weakness as "driven by speculators." Kato, seen as more aggressive than his predecessor, repeated threats of possible intervention. However, his credibility is wearing thin—USD/JPY barely reacted, holding just above 150.70 after surging through 150 in the wake of yesterday’s Bank of Japan policy decision. Markets are increasingly treating Kato’s warnings as empty—the boy who cried wolf.

In China, the S&P Global Manufacturing PMI fell to 49.5 in July, indicating a contraction in factory activity. The result surprised to the downside, coming in below the expected 50.3 and June’s 50.4. It only marginally outpaced the official NBS print of 49.3, released a day earlier, pointing to persistent weakness in Chinese industrial momentum.

In FX, major currencies traded in narrow ranges as traders waited ahead of the U.S. nonfarm payrolls report, due at 8:30 a.m. ET.

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Source: Forex Live