Japan's unemployment rate edged down to 2.4% in July 2026 from 2.5% in each of the previous three months, coming below market expectations of the same level. It was the lowest reading since July 2025. The number of unemployed fell by 80 thousand to a one-year low of 1.67 million, while employment declined by 150 thousand to a four-month low of 68.31 million. The labor force also shrank by 240 thousand to an 11-month low of 69.98 million. Meanwhile, the number of people outside the labor force rose by 30 thousand to 39.42 million. On a non-seasonally adjusted basis, the labor force participation rate eased to 64.1% from 64.4% in June, though it remained above 63.9% a year earlier. Separately, the jobs-to-applicants ratio held steady at 1.18, unchanged from June and slightly below market forecasts of 1.19.

Crude oil held above $83 per barrel on Friday after rebounding in the previous session, as escalations in the Russia-Ukraine war shifted market attention from the Middle East toward Eastern Europe. Reports indicated that Russian President Vladimir Putin said talks with Ukraine had yielded no results and that Russia was preparing to intensify the war. Ongoing Ukrainian strikes on Russian refineries and ports are disrupting the country’s energy infrastructure and could constrain its ability to export crude and refined products. Still, oil prices are on track to end the week lower as markets weighed signs of diplomatic progress in the Middle East and improving supply prospects through the Strait of Hormuz. Iran’s military said it had reached a revenue-sharing agreement with Oman over the strategic waterway, although Tehran stressed that the arrangement does not guarantee an immediate reopening of the strait.

All ECB policymakers agreed to leave rates unchanged at the July meeting, following the first rate hike since 2023 in June, citing elevated uncertainty and the fact that the full inflationary impact of the energy shock had yet to emerge, according to the latest minutes. However, some said they would not have opposed another hike, noting that the likelihood of further tightening becoming unnecessary remained low. Policymakers saw upside risks to inflation and downside risks to growth from geopolitical developments in the Middle East and the Russia-Ukraine war, while stressing that communication should remain clear to avoiding any pre-commitment to a September move. The minutes emphasized that the July pause should not be interpreted as the end of the tightening cycle, with another hike likely unless the inflation outlook improves significantly. At the same time, policymakers wanted to keep the September decision open, allowing room for the medium-term inflation outlook to improve.

Canada's current account balance swung to a surplus of C$8.8 billion in the second quarter of 2026 from a deficit of C$8.3 billion in the prior quarter, marking the first surplus since the second quarter of 2022 and the largest since the last quarter of 2005. The result also missed expectations for a C$2 billion shortfall. Strong gains in goods exports, led by energy products, moved the trade in goods balance from a deficit to a large surplus of C$12.2 billion, being the main contributor in the shift. Imports of goods increased as well, but at a slower pace than exports. By contrast, the services surplus declined sharply to C$26 million, while the primary income deficit widened to C$2.6 billion reflecting higher interest on debt securities. The secondary income deficit also widened sharply to C$782 million, driven by higher private transfers and lower government transfers.

The number of people claiming unemployment benefits in the US fell by 4,000 to 203,000 on the third week of August, below market expectations that they would rise to 208,000, holding the trend of low claim counts since dropping to the near 60-year low of 189,000 in the middle of July. Meanwhile, continuing claims, a gauge of outstanding unemployment in the US, fell by 18,000 to 1,778,000 in the earlier period, also below expectations. The data extended the period of resilience in the US labor market despite the unexpected contraction in payrolls per the latest BLS data, aligned with the view from some FOMC members that the US is in full employment. Meanwhile, initial claims filed by federal employees, which have been under scrutiny due the administration's efforts in decreasing the number of public workers, fell by 59 to 390, the lowest since December 2024.

The US goods trade deficit widened to $118.8 billion in July 2026 from $101.4 billion in June, according to preliminary data. It was the largest deficit since March 2025, when it reached a record $158.7 billion. Imports rose 3.7% to a 16-month high of $318.2 billion, driven by higher purchases of capital goods (11.3%) and consumer goods (0.1%), which more than offset declines in industrial supplies (-3.9%), automotive vehicles (-1.6%), and foods, feeds, and beverages (-0.9%). Meanwhile, exports fell 2.9% to $199.4 billion, marking a third consecutive monthly decline and their lowest level since January. The decrease was led by lower shipments of industrial supplies (-11.2%), foods, feeds, and beverages (-1.4%), and automotive vehicles (-0.7%).