Posted at 23 July 2025 / Categories Market Roundups
Market Roundup
• Canada New Housing Price Index (MoM) (Jun) -0.2%, 0.0%forecast, -0.2%previous
•US Existing Home Sales (MoM) (Jun) -2.7%, 1.0% previous
•US Existing Home Sales (Jun) 3.93M, 4.00M forecast, 4.04M previous
•EU Consumer Confidence (Jul) -14.7 -15.0 forecast, -15.3 previous
•US Crude Oil Inventories -3.169M, -1.400M forecast,-3.859M previous
Looking Ahead Economic Data(GMT)
• 23:00 Australia Judo Bank Manufacturing PMI (Jul) 50.6 previous
• 23:00 Australia Judo Bank Services PMI (Jul) 51.8 previous
•00:30 Japan au Jibun Bank Manufacturing PMI (Jul) 50.2 2 forecast, 50.1 previous
•00:30 Japan au Jibun Bank Services PMI (Jul) 51.7 previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Forecast
EUR/USD: The euro rose against the U.S. dollar on Wednesday as investor sentiment improved following renewed optimism for a trade agreement between the United States and the European Union. This came after President Donald Trump announced a major trade deal with Japan, which included a reduction in auto tariffs from 25% to 15% and protected Japan from additional duties. In return, Tokyo pledged a $550 billion package in U.S.-bound investments and loans.The news buoyed hopes for a similar breakthrough with the EU, particularly after Trump confirmed that European officials were scheduled to arrive in Washington on Wednesday for trade negotiations.Meanwhile, the European Central Bank is widely expected to keep interest rates unchanged at its policy meeting on Thursday, following eight consecutive rate cuts. Markets remain on edge over the potential for unexpected U.S. tariff measures, keeping the euro's gains in check. Immediate resistance can be seen at 1.1817(23.6%fib ), an upside break can trigger rise towards 1.1894(Higher BB).On the downside, immediate support is seen at 1.1717(SMA 20), a break below could take the pair towards 1.1559(38.2%fib).
GBP/USD: Sterling strengthened on Wednesday as a wave of optimism swept through financial markets following the announcement of a trade deal between the United States and Japan. The agreement, which reduces tariffs on Japanese auto imports and includes a substantial $550 billion package of investment and loans from Tokyo to the U.S., helped improve global risk sentiment.This renewed optimism lifted appetite for risk-sensitive assets, supporting currencies like Australian dollar, New Zealand dollar and pound. The UK, already having its own trade deal in place with Japan, is seen as a potential beneficiary of broader global trade cooperation, which could in turn support its economy. Additionally, investors are looking ahead to key UK data releases, including the flash July PMIs on Thursday and June retail sales on Friday. These figures could offer further insight into the UK economic outlook and influence expectations for future Bank of England policy moves. Immediate resistance can be seen at 1.3597(38.2%fib), an upside break can trigger rise towards 1.3680(July 4th high).On the downside, immediate support is seen at 1.3439(50%fib), a break below could take the pair towards 1.3381(Lower BB).
USD/CAD: The Canadian dollar edged lower on Wednesday as investors assessed the potential for further trade deals after US -Japan trade accord. On Tuesday, the U.S. finalized a trade deal with Japan that reduces steep tariffs on Japanese imports in exchange for a $550 billion investment and loan package directed toward the United States. Canadian retail sales data for May, due on Thursday, could offer clues on the hit from tariffs to the domestic economy. Economists forecast a monthly decline of 1.1%.Still, investors expect the Bank of Canada to keep its benchmark interest rate on hold at 2.75% at a policy decision next Wednesday, after recent data showed underlying inflation remaining well above target. The loonie was trading nearly unchanged at 1.3604 per U.S. dollar, or 73.51 U.S. cents, after earlier touching its strongest intraday level since July 4 at 1.3576.Immediate resistance can be seen at 1.3659(SMA 20), an upside break can trigger rise towards 1.3729 (38.2%fib).On the downside, immediate support is seen at 1.3557(23.6%fib ), a break below could take the pair towards 1.3508(Lower BB).
USD/JPY: Dollar dipped against yen on Wednesday following Trump’s announcement of a trade agreement with Japan ahead of the looming tariff deadline.Trump said the agreement would see Japan invest $550 billion into the United States, with a 15% tariff set on U.S. imports from Japan.Japan’s Prime Minister Shigeru Ishiba announced that tariffs on Japanese cars exported to the U.S. will be cut to 15% from 25%, with no restrictions placed on import volumes. Japan will also increase purchases of agricultural products such as U.S. rice, a Trump administration official said. Ishiba said the share of U.S. rice imports may increase under its existing framework but that the agreement did "not sacrifice" Japanese agriculture.Bank of Japan Deputy Governor Shinichi Uchida called the deal "very big progress" and said it reduces uncertainty over the economic outlook. Immediate resistance can be seen at 147.12(38.2%fib)an upside break can trigger rise towards 148.00(Psychological level) .On the downside, immediate support is seen at 14625(SMA 20)a break below could take the pair towards 145.57(50%fib).
Equities Recap
European shares ended near two-week highs on Wednesday, driven by automakers, as hopes grew for a U.S.-EU trade deal that could ease tariff-related growth concerns.
UK's benchmark FTSE 100 closed up by 0.42 percent, Germany's Dax ended up by 0.83 percent, France’s CAC finished the day up by 1.37 percent.
U.S. stocks rose on Wednesday and Treasury yields rebounded as news of trade deals with Japan and potentially the EU boosted investor sentiment amid ongoing tariff negotiations..
Dow Jones closed up by 1.14% percent, S&P 500 closed up by 0.78% percent, Nasdaq settled up by 0.61% percent.
Commodities Recap
Gold prices fell further on Wednesday as reports of a nearing U.S.-EU 15% tariff deal reduced safe-haven appeal, while silver briefly spiked to its highest since September 2011.
Spot gold was down 1.1% at $3,394.64 per ounce, as of 02:33 p.m. ET (1833 GMT), after hitting its highest point since June 16 earlier in the day.
Oil prices held steady on Wednesday as markets weighed U.S.-EU trade developments following President Trump’s tariff agreement with Japan.
Brent crude futures settled 8 cents, or 0.12%, lower at $68.51 a barrel, while U.S. West Texas Intermediate crude futures were down 6 cents, or 0.09%, at $65.25 per barrel.