Ireland’s HICP (Harmonised Index of Consumer Prices) for June rose by 0.5%, matching expectations. This indicates ongoing inflation trends in Ireland for that month. EUR/USD struggled to hold the 1.1700 support level on Thursday. The US dollar gained strength due to unexpectedly good US labor market data, influencing risk in the market.

Bitcoin Market Activity

Bitcoin reached a new high of $111,999 as dovish minutes from the Federal Reserve led to $500 million in liquidations in just 24 hours. This volatility impacted leveraged positions across the cryptocurrency market. GBP/USD fell towards weekly lows near 1.3550 after a failed rebound. Strong US economic data bolstered the US dollar, limiting gains for the British pound while trade talks continue. Gold fluctuated slightly above $3,300 per troy ounce but struggled to keep its previous gains. Stable US 10-year bond yields added challenges to gold’s price movement.

Impact of US Tariffs

New US tariffs affecting Asia are higher than expected. However, Singapore, India, and the Philippines might benefit from concessions if negotiations go well. We’re seeing a series of connected movements that influence asset behavior. Ireland’s HICP increase of 0.5% in June matches predictions, suggesting inflation pressures persist but haven’t sharply risen. A stable HICP indicates that the European Central Bank won’t feel pressured to make sudden changes, easing expectations for interest rate adjustments soon. EUR/USD faced pressure as it dipped toward 1.1700. Although this level held for now, a stronger US labor market supported the dollar. When employment is strong, the Federal Reserve can keep interest rates steady longer, especially with recent dovish hints from the Fed minutes. Monetary tightening is less likely unless new information significantly changes the outlook. In cryptocurrency, Bitcoin’s rise to nearly $112,000 reflects broader liquidity and the unwinding of leveraged positions. The $500 million in liquidations across crypto futures markets highlights how quickly leveraged positions can collapse when the market shifts, especially after significant monetary policy announcements. GBP/USD continues to drop towards 1.3550 after a failed rebound. Recent robust US data has favored the dollar, while the British pound struggles due to weak domestic growth. Ongoing trade discussions haven’t significantly countered the stronger demand for the US dollar. Overall, the trend favors the dollar unless better UK data emerges. Gold is fluctuating around the $3,300 mark. While this seems strong, the price shows uncertainty. Stable US 10-year yields are making it difficult for gold to sustain breakout gains. When bonds stabilize, there is less urgency to invest in non-yielding assets like gold. In the near future, trends in gold will likely depend on whether pressure mounts on central banks to reconsider easing policies. In Asia, tariffs have sparked focused discussions. Although higher tariffs were announced, ongoing negotiations may lead to tailored concessions. Countries like Singapore, India, and the Philippines could be in a better position if tariff reductions occur. Currency and equity index responses indicate expectations are shifting, viewing these developments as mixed opportunities rather than just threats. In the next few days, attention will be on how these trends hold, especially as many depend on upcoming US data. Sudden corrections can follow periods of rapid movement, especially in derivatives where positions are adjusted. While volatility premiums might take a temporary hit, risk is clearly back on the table. Create your live VT Markets account and start trading now.

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