Global markets lower as European stocks lead losses
The Australian dollar extended losses from eight-month highs yesterday as markets turned more cautious towards the outlook for trade after the weekend’s US-EU trade deal.
The euro was the hardest hit as markets worried about the impact on the European economy – especially automakers – from the announcement of a 15% tariff on European imports into the US.
The EUR/USD fell 1.3% in its biggest one-day drop in over two months.
The Aussie was also lower with the AUD/USD down 0.7%. The NZD/USD fell 0.6%.
In Asia, the greenback was sharply higher. The USD/SGD gained 0.3% while USD/CNH climbed 0.2%.
ECB signals caution as euro faces mixed data, trade noise
European Central Bank board member Piero Cipollone says the eurozone is flashing “conflicting signals,” prompting a wait-and-see approach on rate moves until clearer data emerges after September.
In an interview with Slovenia’s Delo, Cipollone stressed the need to gauge the fallout from tariffs and rising imports from China before deciding on next steps.
“We need to understand how trade disruptions are affecting euro prices, whether through tangled supply chains or redirected trade flows,” he said. While strong job numbers and planned defense and infrastructure spending could eventually boost growth, he warned that sinking consumer confidence threatens spending, and business investment remains under pressure.
The euro is trading just above its 21-day average at 1.4967 against the Singapore dollar, roughly 1% shy of its April 11th peak.
All eyes now turn to Thursday’s FOMC decision, which could jolt EUR/SGD from its recent range.
US to give China more time to settle trade row
Washington plans to extend its trade deadline with Beijing by ninety days, according to an exclusive from the South China Morning Post.
Citing sources from both sides, the report says Treasury Secretary Bessett will offer the extension to Chinese Vice Premier He Lifeng during Monday’s meeting in Stockholm.
Insiders suggest neither country will add new duties during the extended window, allowing talks to continue without escalation.
USD/CNH has climbed for three straight sessions. It’s now eyeing resistance at 7.1722—the 21-day EMA—followed by 7.1867, its 50-day EMA.
Euro leads losses
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 28 July – 2 August
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*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.
