Markets Unfazed by Trump Tariff Letters; Kiwi Outshone by Aussie ahead of RBNZ Hold
| Action Insight Mid-Day 7-8-25 |
Markets Unfazed by Trump Tariff Letters; Kiwi Outshone by Aussie ahead of RBNZ Hold |
Global equity markets traded cautiously and remained stable on Tuesday, showing limited reaction to escalating US trade threats. Major European indexes moved in narrow ranges following modest gains in Asia, while US equity futures stayed flat. The restrained response suggests markets are neither complacent nor panicked as they assess the credibility and timing of new tariff risks. Investor nerves were tested when US President Donald Trump confirmed that imports from 14 countries—including Japan, South Korea, Malaysia, and Indonesia—will face new tariffs ranging from 25% to 40%, starting August 1. However, the absence of immediate action and Trump’s ambiguous tone helped calm markets. “The deadline is firm, but not 100% firm,” he told reporters, suggested that the US remains open to renegotiation. It's also noted that pushing the implementation date to August—beyond the previously expected July 9 deadline—helped ease fears of an imminent cliff edge. This delay gives key US trade partners more time to negotiate or soften the impact, explaining why risk sentiment has remained broadly resilient so far...... |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.1667; (P) 1.1729; (R1) 1.1770; More... EUR/USD's correction from 1.1829 continues today and intraday bias stays neutral. Downside should be contained by 1.1630 resistance turned support to bring rebound. Firm break of 1.1829 will resume the rise from 1.0176 and target 61.8% projection of 1.0176 to 1.1572 from 1.1064 at 1.1927. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:50 | JPY | Bank Lending Y/Y Jun | 2.80% | 2.30% | 2.40% | | 23:50 | JPY | Current Account (JPY) May | 2.82T | 2.58T | 2.31T | | 01:30 | AUD | NAB Business Confidence Jun | 5 | 2 | | 01:30 | AUD | NAB Business Conditions Jun | 9 | 0 | | 04:30 | AUD | RBA Interest Rate Decision | 3.85% | 3.60% | 3.85% | | 05:00 | JPY | Eco Watchers Survey: Current Jun | 45 | 45.2 | 44.4 | | 05:30 | AUD | RBA Press Conference | | 06:00 | EUR | Germany Trade Balance (EUR) May | 18.4B | 18.1B | 14.6B | 15.8B | | 06:45 | EUR | France Trade Balance (EUR) May | -7.8B | -7.7B | -8.0B | -7.7B | | 10:00 | USD | NFIB Business Optimism Index Jun | 98.6 | 98.9 | 98.8 | | 14:00 | CAD | Ivey PMI Jun | 49.1 | 48.9 |
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