 The forex market opened the week with low volatility and mixed Asian equities, but politically driven developments are keeping some G10 currencies in motion. Dollar is the weakest performer so far, with the Canadian Dollar also under pressure despite rebounding from weekend lows. Yen leads amid safe-haven inflows, while Kiwi and Aussie post modest gains. Ottawa moved to de-escalate tensions with Washington by announcing a reversal of its digital services tax, originally set to take effect this week. The retroactive levy on American tech firms had prompted a sharp rebuke from US President Donald Trump, who vowed to halt all trade discussions with Canada. Reversing the tax was described by Canadian leadership as a strategic step to preserve the July 21 negotiation timeline and prevent retaliatory tariffs. Canadian Prime Minister Mark Carney and Finance Minister Champagne framed the decision as a way to unlock progress on a new economic and security partnership. Markets welcomed the move, and the Loonie erased some of its losses, though sentiment remains fragile given the broader uncertainty heading into July’s tariff deadlines. Meanwhile, the UK confirmed its partial trade agreement with the US has now come into force. British car exports will now face a reduced 10% tariff quota, and duties on aircraft parts have been removed. While the deal marks progress, the issue of steel and aluminum tariffs remains unresolved. UK officials reiterated their intent to push for 0% tariffs on core steel products under the agreed framework. ..... | 
