Insights 
VT 
EU finance minister expresses willingness to retaliate if a fair agreement with the US is not reached
The German finance minister has announced that the EU is ready to act if a fair agreement with the US is not reached. Negotiations are still ongoing, and no specific details about the potential arrangements have emerged.
The EU is ready to implement countermeasures if talks do not produce a fair result. The deadline for these negotiations has been pushed back from 9 July to 1 August.
This extension shows that the discussions between Brussels and Washington are still unresolved. Both sides may be stalling to test each other’s determination or to manage domestic political challenges. The main concern now is how this deadline will impact cross-border capital flows, especially in areas that could be affected by regulatory changes or retaliatory actions.
The finance minister’s message was clear: if the outcome doesn’t meet their fairness standards, they will respond. While specific actions weren’t mentioned, this uncertainty adds risk that traders should consider, especially those with short-term investments sensitive to tariffs or trade disruptions. These pressures are likely to affect commodity-related derivatives and large industrial stocks more than defensive or domestic-focused assets.
The market previously anticipated that clarity would come by early July, but that expectation is no longer valid. With the new deadline, positions built around a July agreement will need to be adjusted. Spreads that had narrowed in anticipation of certainty may widen again, and we should keep an eye on implied volatility over the next two weeks.
What can be done now? First, reassess exposure to trade-sensitive indexes. Consider whether current option prices accurately reflect the prevailing political risk. Also, look for updated statements from European officials. A shift from a cooperative tone to one of tension could signal a need to adjust for potential downside risks. It’s important to focus on the timing and flow of information, not just its content.
Delays present chances to reassess. Past experiences show that markets often react faster than negotiations progress. Thus, patience might pay off, but it must be aligned with effective hedging strategies.
Lindner has clearly stated the EU’s position, eliminating any uncertainty about the bloc’s intentions. This statement should influence short-term expectations. Positions based on the assumption that Europe will remain passive should be re-evaluated or even unwound. Rebalancing doesn’t need to be drastic—just an attentive approach to changing circumstances.
The new key date is 1 August. This provides a clear reference point, and there is potential for more comments, draft agreements, or even leaks leading up to it. Being prepared for these developments is essential.
European indices show slight gains, mirroring US futures after the holiday.
European stock indices started the day with small gains. The Eurostoxx, Germany’s DAX, France’s CAC 40, the UK’s FTSE, Spain’s IBEX, and Italy’s FTSE MIB each rose by 0.1%.
This rise matches the US futures, where S&P 500 futures also increased by 0.1%. After a long weekend, Wall Street faced some challenges due to tariff letters from Trump. The future effects of this situation remain unclear, as major companies haven’t been mentioned yet.
European Markets Signal Caution
The small rise in European markets today shows that while investors are cautious, they haven’t been shaken by recent geopolitical events. The 0.1% index gains may be small, but they reflect a collective sigh of relief from investors, especially with US markets reopening after a quiet Monday. The upward movement in European markets reflects the same trend in S&P 500 futures. American traders, returning from a brief break, seem to be acknowledging that no major companies are currently on Washington’s list. While there is a chance that stricter trade rules could be introduced, the wait for which companies will be affected may explain the cautious optimism. What’s interesting is how the market is positioning itself. With uncertainties about tariffs, the balanced changes in equity futures suggest that traders are hedging rather than reacting. Long exposure remains intact, and we haven’t seen sudden spikes in volatility. Instead, the derivatives market is effectively waiting, adjusting, and repricing without overreacting. Since futures are not changing dramatically, there remains time to manage risk. The small 0.1% increases act as a gentle push, indicating a preference for maintaining current exposure without unnecessary risk. In summary, traders are staying engaged while also being careful about upcoming news. From our viewpoint, the muted movements are significant. When derivatives markets don’t wildly swing or reclaim gains immediately, it promotes a more relaxed approach. Traders often struggle with trying to time the noise, but in this instance, patience is beneficial.Impact of Washington’s Letters
The letters from Washington don’t directly name major companies, but they add uncertainty about market access and global business strategies. Nevertheless, traders, accustomed to such shocks, seem less anxious and are interpreting these delays as temporary rather than indicative of a new trend. Notably, the gains in Europe come amid mixed signals from sectors most affected by tariffs and international policies. For short-term traders, this is a warning. For the upcoming sessions, it may be wise to focus on domestic influences rather than chasing global headlines that lack immediate consequences. In our analysis of options pricing, we’ve noticed a slight increase in open interest for contracts that are grouped closely—suggesting a preference for stability rather than taking risks on breakouts. A noteworthy change is the shift away from expensive hedges; traders are only seeking protection when significant shifts are confirmed. As the week continues, we should monitor implied volatility in key indices. Any sharp increases not linked to realized movements could indicate stress—but for now, volatility remains steady. This steadiness allows traders to manage delta without constantly adjusting gamma exposure with each speculative bit of news. Currently, the alignment between European indices and US futures isn’t driven by strong earnings or policy changes. Instead, it reflects a measured response to incomplete information. This stability is telling; markets tend to react more strongly to uncertainty than to bad news. A consistent reaction like this is quite revealing. Let’s keep an eye on sector shifts as we approach Thursday. If cyclical stocks start to lag, we may need to reconsider if our current positions are too generous given the overall economic situation. Until then, derivatives markets appear stable, with no significant distortions in skew, allowing for some time—though limited—for reassessment. Create your live VT Markets account and start trading now.Ethereum’s future could see either a significant drop or a strong short squeeze.
Leveraged funds are significantly shorting Ethereum futures, as shown in the Commodity Futures Trading Commission’s (CFTC) weekly COT report. This heavy short positioning could result in a sharp “short squeeze” if Ethereum’s price rises unexpectedly.
The COT report gives a weekly overview of trader positions in futures markets, which can help forecast price changes. By analyzing these positions, traders can anticipate market shifts driven by widespread bearish or bullish sentiments.
Traders enter futures positions, betting either that prices will fall (short) or rise (long). Companies managing these positions report their holdings each Tuesday to the CFTC, which verifies the information by Wednesday and publishes the report by Friday afternoon.
The report divides traders into categories: Leveraged Funds, Dealer Intermediaries, Asset Managers/Institutions, Other Reportables, and Nonreportable (small traders). For example, on July 1, 2025, leveraged funds held 12,574 short contracts on Ethereum, indicating a negative outlook.
The large short positions from leveraged funds could put downward pressure on Ethereum’s price. However, buying activity from Asset Managers and Institutions can help stabilize or reverse this trend. For traders, closely monitoring leveraged funds’ positions and price changes is crucial to understanding potential market shifts.
The data clearly shows that leveraged entities are heavily positioned on one side of the trade, which often leads to increased volatility. These firms are not making small bets; they are investing significant capital while expecting Ethereum’s price to fall. Such a concentration of short positions can lead to sharp counter-movements, especially if market sentiment suddenly changes or a news event nudges it in the opposite direction. In these situations, a quick liquidation of short positions can drive prices up rapidly.
These short positions didn’t form overnight. In recent weeks, they have grown faster than long positions from other traders. When this imbalance continues, it puts pressure on the market. It’s not just about whether prices drop further; it’s also about how other trading groups can respond to a price rebound. The more skewed the short positions, the higher the risk of a squeeze. This doesn’t guarantee an immediate trend reversal, but significant changes often happen when one group overextends itself.
If Ethereum’s price starts to rise—even slightly—the futures market could accelerate that move. Short traders, like those in Carter’s group, might quickly feel margin pressure, prompting them to close their positions not by choice, but out of necessity. These feedback loops can create sudden price spikes, especially during times of low trading volume or reduced liquidity.
What to focus on now is not just the price but also how trader positions are changing. For instance, if funds that are short on Ethereum start reducing their positions, it could indicate a shift in sentiment, suggesting the negative outlook may have hit its limit. Conversely, if larger asset holders, like those in Yang’s group, increase their long contracts, it could show growing confidence or a hedge against a price reversal.
Monitoring spread behavior can also provide early signals. If basis narrows or becomes positive, it would indicate that futures prices are catching up to spot prices—or are expected to. Consistent funding rates combined with increasing open interest, particularly on the long side, would support this view. A complete unwind of net short data isn’t necessary; a few strong moves paired with reinforcing price action might be enough to disrupt the large short interest.
From our perspective, it is essential to align our positions with real-time market data. Rather than waiting for a squeeze to happen, look for confirming signs in volume, price structure, and weekly COT updates. A downtrend that looks durable may quickly falter if the right conditions are not met. The key is to act based on factual data—not assumptions.
Lastly, pay attention to correlations with other digital assets or equity indexes. If these correlations begin to weaken, and Ethereum starts to rise while leveraged funds remain short, the dislocation could increase. We’ve seen similar trends in the past across various markets where positioning becomes a vulnerability—this may be happening again now.
Recent data shows that JPY struggles for bullish momentum, while USD has cautious support from mixed outcomes.
The USDJPY pair has reached the top of its recent range due to weak Japanese wage growth and negative trade news between the US and Japan, affecting the yen. The US dollar has stayed strong since last Thursday’s US Non-Farm Payroll report, which showed better results than expected and changed interest rate expectations to a more hawkish tone.
Weak wage growth in Japan and ongoing US-Japan trade talks look unfavorable, potentially affecting hopes for a year-end rate hike by the Bank of Japan (BoJ). On the daily chart, USDJPY has risen to around 146.28, with buyers possibly pushing toward the 148.28 resistance level, which may attract sellers.
Market Dynamics
The 4-hour chart shows a range between support at 142.35 and resistance at 146.28. Here, sellers might step in with set risks above resistance, aiming for a drop toward the 144.35 area. On the 1-hour chart, a rising trendline indicates bullish momentum that buyers can use to push higher. Upcoming catalysts include US tariff letters and trade deals expected soon, along with US Jobless Claims data on Thursday, which could affect market trends. We are at a point in USDJPY action where it’s less about reacting and more about predicting. With Japan’s wage pressures barely rising and trade discussions affecting sentiment, the yen lacks support without a significant external boost. Following strong US labor data, the dollar seems well-positioned, suggesting that any near-term dips may be bought instead of sold.Structural View
From a structural perspective, pushing above 146 indicates that this level, once seen as a peak, is now being tested as a base for stronger buying. Looking at the 4-hour chart, we’ve been moving in a narrow range, but the upper edge feels thinner. Sellers have likely been operating with risk just above that boundary, hoping for a drop to the lower mid-144s. However, this strategy now carries more risk. The hourly chart still shows a clear rising support line, suggesting buyers are ready to absorb small dips. The discussion on tariffs has its own timeline, but timing doesn’t always match chart patterns. We anticipate erratic responses to any policy decisions. Market reactions will focus more on the tone rather than the details, especially if any announcements suggest restrictions. Thursday’s jobless data doesn’t need to stray far from expectations to have an effect. Even minor differences could influence rate expectations, pushing short-term yields and impacting USDJPY. Sellers betting on a rejection at these highs must monitor volume and momentum indicators closely. If participation declines without a clear downside break, maintaining short positions becomes less appealing. Any dip that holds above the rising short-term line might quickly reverse. We expect that efforts to limit price action near 148 will likely face multiple tests. Significant reactions might not occur unless there’s a policy surprise—like an unexpected change in trade stance or a spike in the US economic outlook. Until then, upward pressure remains. Create your live VT Markets account and start trading now.France’s trade balance shows a deficit of €7.76 billion, which is better than the expected deficit of €8.25 billion, despite a decline in exports.
France’s trade balance for May was -€7.76 billion, which is better than the expected -€8.25 billion.
The earlier figure of -€7.97 billion has now been updated to -€7.6 billion.
Exports fell by 0.3% during the month, while imports remained mostly unchanged.
The French Ministry of Finance released these figures on July 8, 2025.
In summary, the trade deficit was smaller than many had predicted. The revised previous number improves the outlook, suggesting that external pressures may not be as strong as analysts thought. Although exports dropped slightly and imports stayed the same, the result was a smaller trade gap compared to earlier figures and forecasts—this double adjustment shows that outbound flows are relatively resilient, even as growth slows.
From our perspective, we notice a slight decline in exports, with no increase in demand for imports, which keeps the trade gap stable. For markets that react based on perceptions rather than facts, the revision is significant. A revision of nearly €400 million is notable and shouldn’t be ignored in larger market models. This adjustment can subtly affect pricing strategies, especially for those focusing on euro-valuations.
In derivative positioning, the details matter. The slight decline in exports is within expected seasonal patterns, but combined with steady imports and more favorable historical revisions, traders might need to adjust their rates or volatility strategies. We believe that the trade-related downside for the euro currently lacks strong fundamentals to push narratives forward. Instead, we should focus on hedging strategies that were based on worse trade conditions—these may now be a bit overstretched.
The main takeaway is not just the headline number, but also the changed momentum from the updated series. Revisions often go unnoticed, yet they impact longer-term forecasts and behavior models. Those using external balances to adjust the short-end euro curve might want to reevaluate their sensitivity points. There’s no strong recommendation for directional changes, but aligning with updated baselines will minimize unwanted exposure.
In short bursts, these updates might not cause widespread market upheaval, but they reveal where adjustments are lagging. We’ve seen some short-term traders losing out by relying on outdated data, and patience is thin in today’s market for mistakes driven by old information. While export data dipped slightly, the revised import-to-export gap gives a clearer picture of the risks. The smaller the deficit becomes, the more confidence trading desks will need to price in trade weaknesses alone.
In May, French exports dropped from €49.256 billion to €48.888 billion.
France’s exports decreased from €49.256 billion in April to €48.888 billion in May. This drop reflects changes in market conditions and economic factors during this time.
The EUR/USD currency pair fell below the 1.1700 level as the US Dollar grew stronger. This trend stemmed from confident trading and hopes for a US-European trade agreement, which boosted market optimism.
GBP/USD hit lows around 1.3520 but then slightly recovered to 1.3540. The dollar’s strength and major speculations about trade policies affected the pound’s weaker performance.
Gold And Dollar Dynamics
Gold prices stayed under pressure around $3,300 per troy ounce because of the dollar’s strength. Rising US Treasury bond rates, influenced by a tariff extension, negatively affected the XAU/USD. Despite trade and tariff uncertainties, cryptocurrencies showed signs of recovery. Market shifts were noted as the ongoing trade disputes between the US and its partners impacted Bitcoin, Ethereum, and XRP. New US tariffs impacted Asian economies, which might lead to benefits for Singapore, India, and the Philippines. These countries could gain if tariff negotiations result in concessions, changing the international trade landscape.France’s Export Decline
France’s export drop from €49.256 billion in April to €48.888 billion in May highlights weaker external demand and possible changes in regional trade ties. Such a decrease often signals that foreign buyers may be seeking better prices or are facing slowdowns in their own economies. From a broader perspective, if the trade balance continues to weaken, it might slowly put pressure on the euro. It also suggests that foreign transactions into France could slow down further unless boosted by fiscal changes or support for specific sectors. The euro dipped below 1.1700 against the US dollar, matching recent trends where the dollar strengthens with disappointing European data. This price drop increases the risk of further declines. It’s not just about the dollar’s strength; the US currency gained traction amid speculation about a possible trade agreement between the US and EU. If these negotiations make progress, short positions on EUR/USD might face pressure, especially with rising optimism around US exports or tariff changes. The pound’s drop to around 1.3520, followed by a small recovery to 1.3540, indicates market caution. Traders are cautious about exposing themselves to sterling in the current trading climate. The pound’s sensitivity to cross-border negotiations has intensified, especially as the dollar dominates. Therefore, we need to stay alert to any sudden statements from UK or US officials. If trade discussions remain uncertain or the Dollar Index rises, the cable might struggle to secure consistent demand beyond minor recoveries. Gold is experiencing downward pressure, hovering around $3,300 per troy ounce without gaining momentum. This hesitance is partly due to rising Treasury yields, which increased following new tariff announcements, making US assets more attractive. Typically, as yields rise and the dollar remains strong, gold becomes less appealing, especially as investors shift risk. Until we see real signs of global inflation or changes in central bank policies, we may not see a quick change in gold’s momentum. The cryptocurrency scene is volatile but presents opportunities. Bitcoin, Ethereum, and XRP fluctuate mainly due to policy uncertainty rather than typical supply-demand dynamics. Tariffs on tech imports are creating nervousness, especially for institutional investors who view digital assets as secondary to broader index trades. While there is potential for a rebound, we need to see increased trading volume on deeper pullbacks to confirm bullish trends. Any resolution on tariffs or strategies to separate from major economies could significantly impact short-term pricing. New US tariffs are beginning to shift manufacturing away from traditional stronghold nations. While this could hurt overall, smaller economies like Singapore, India, and the Philippines may emerge as alternative suppliers. If companies start redirecting their operations, even for a short time, these emerging markets could see some benefits. We don’t anticipate a major overhaul, but those tracking trade-dependent investments or currencies may notice shifts in pricing models and trading volumes. Attention should be on any policy updates from regional governments aimed at boosting manufacturing growth or attracting foreign investment. Create your live VT Markets account and start trading now.Bullock defends the RBA’s effective communication and information sharing strategy
RBA Governor Michele Bullock highlights the bank’s communication at a press conference. She believes their careful approach has been helpful, emphasizing that information is available for public understanding. Bullock wants to help the public understand the RBA’s actions and decisions through clear communication. She recognizes that markets have many resources to draw their own conclusions.
When asked about possible weaknesses in the RBA’s communication, Bullock does not directly say if they followed their own suggestions. She defends the bank’s visibility in public talks, saying, “we’re out there all the time.” The Governor stands firm, avoiding admitting any possible mistakes in their communication strategy.
Public trust and messaging
Bullock emphasizes that public trust is built on clear and steady messaging. She suggests the Reserve Bank prefers a slow and measured approach, releasing updates only when the data clearly supports it. This steady style of announcement can provide predictability, which is helpful in uncertain situations. She warns that too much communication from the Bank may confuse expectations rather than clarify them. Her refusal to engage directly with questions about aligning with the Bank’s own guidance hints at a reluctance to admit faults. However, her response does not seem intentionally vague. Instead, it appears she believes any confusion arises from different interpretations, not from mistakes. She points out the RBA’s visibility, suggesting that their commentary is accessible for those paying attention. Her choice of words is important in this context. Our interpretation here is especially relevant right now. By asserting that they have been visible and consistent, Bullock suggests that recent policy directions are not reactive. This becomes significant when short-term instruments may overreact to the situation. We must consider whether the market’s pricing of further tightening is justified or if it reflects misaligned sentiment influenced by outdated data. The Bank appears to favor a patient approach—slow and steady rather than overly aggressive.Market implications and pricing
Traders observing implied volatility should focus on rate expectations for the next two to three quarters. Recent forward OIS curves might need adjustments if the Bank maintains this cautious tone. We’ve seen stable announcements impact swap pricing before, especially when the market tends to seek higher risk premiums. Bullock’s comments do not indicate that a sudden change is on the horizon. Lowe’s successor continues the trend of cautious guidance, which will directly affect overnight funding bets. For now, options on short-term contracts may not require a strong bias towards upward adjustments. Instead, Bullock’s message suggests a ‘wait and see’ approach, where decisions are based on consistent evidence rather than immediate reactions. We’re not changing course but rather holding our ground. In practice, this tightens conditions only slightly. Inflation persistence is still a concern, but they are addressing it with communication rather than unexpected rate hikes. This alone should limit how much dated contracts price in shifts. Therefore, we need to monitor not just the announcement schedule, but also any signs that the Bank begins to adjust their communication style. Changes in phrasing may occur before any changes in rates. Create your live VT Markets account and start trading now.France’s trade balance for May was €-7.766 billion, falling short of estimates.
France’s trade balance for May stood at €-7.766 billion, slightly worse than the expected €-7.7 billion. This trade deficit indicates that France imported more goods and services than it exported.
It’s important to note that this information can change and should be used carefully for financial decisions. Individuals should verify and research thoroughly before making economic choices based on this data.
Importance Of Trade Data
While this information provides insight into France’s economy, it’s vital to understand the risks and uncertainties in financial markets. There can be financial losses, including losing your entire investment, when trading in open markets. Interpreting these figures requires caution, given the unpredictable nature of financial markets. Readers should consult financial professionals for advice tailored to their individual economic situations. The reported trade deficit of €-7.766 billion for May, slightly exceeding predictions, shows that France imported more than it exported. The small difference from the forecast is noteworthy as it signifies the third consecutive month of widening trade deficits. This may indicate reduced competitiveness abroad, increased domestic consumption of foreign goods, or both. This decline is significant, especially in how overall economic factors could impact prices in futures and options related to European markets.Impact On Financial Markets
Why does this matter? Trade deficits can affect currency values as they relate to the broader current account. A bigger deficit, even just €66 million more than forecasted, may apply downward pressure on the euro in the short term. We have seen that sensitivity to euro fluctuations often rises during periods of changing inflation and interest rate expectations. Since France is a significant part of the Euro Area’s GDP, ongoing weaknesses in trade data could represent a snapshot of regional economic softness. This perception could alter implied volatility if traders begin to anticipate broader economic sluggishness. The effect on sector-specific derivatives is less frequently discussed. Insurers and manufacturers reliant on French exports may face revised earnings outlooks from analysts. This decline might not be immediate, but continued deterioration over several quarters could attract attention from credit and equity volatility strategists. Additionally, there could be a response in rates markets. While no immediate policy changes are expected from this data alone, we have seen bond prices rise during past periods when deficits indicated a slowdown in external economic activity. It is also worthwhile to monitor any short-term changes in OAT spreads against German counterparts if the trend continues. We expect such relative value shifts may attract short-term positions rather than longer-term ones currently. Our key takeaway is not to overreact to today’s figures or ignore them. Short-term traders, particularly those dealing with index futures like the Euro Stoxx 50, might want to reassess correlation assumptions. Movements in companies heavily reliant on exports—especially those sensitive to global transport costs—deserve close monitoring. Structuring trades around potential weaknesses or tapping into implied skew could be a way to capitalize on investor hesitancy if it increases. Long gamma positions may again become attractive if this data foreshadows larger shifts before other significant Euro Area reports. Any continuation of trade figures combined with declines in PMIs or industrial orders could enhance short-term strategies. The construction of these strategies depends on risk appetite, but we’ve seen growing interest in forming directional spreads in French corporate stocks following recent macroeconomic disappointments. While this release may not immediately signal alarm, context is essential. Any evident weakness in trade—especially if backed by downward revisions to past months—could support the narrative that growth forecasts were overly optimistic. If this becomes the consensus, pressure to re-evaluate could become more visible, and as options traders, we aim to stay ahead of that trend. Create your live VT Markets account and start trading now.Akazawa spoke with Lutnick for 40 minutes about Japan’s readiness for trade negotiations without making easy compromises.
Japan’s trade negotiator, Akazawa, recently had a 40-minute phone call with US Commerce Secretary Lutnick. After the call, Akazawa updated Japan’s Prime Minister Ishiba about the results of their discussion.
Both Japan and the US agreed to take part in trade negotiations, but Japan is committed to not making easy compromises.
Details about the negotiations are still unclear. Japan has until August 1 to make a deal with the US.
The conversation between Akazawa and Lutnick shows that both sides are now communicating more directly and using established diplomatic channels to advance what have been cautious talks so far. Akazawa’s quick briefing to Ishiba highlights the increased attention in Tokyo’s leadership.
It’s evident that Tokyo wants to hold its ground, especially with the tight timeline for discussions. As the August 1 deadline approaches, negotiators may feel pressured to find common ground—not based on ideology, but due to commercial realities. This is especially true in areas where tariffs are a key issue. However, it’s unclear if the talks have progressed beyond the initial stage.
Due to this lack of information, market reactions may be subdued for now. As we get closer to mid-June, we expect market participants to start pricing in potential outcomes with more confidence, especially those involved with agricultural imports and automotive parts, which have been central in past discussions.
Akazawa’s insistence on a firm position indicates more than just political posturing; it signals a willingness to wait if the terms remain unbalanced. Any agreement reached will significantly impact industrial commodities and logistics valuations in the medium term. Depending on the terms, traders might need to adjust their positions in related futures and options markets.
From our view, this means paying attention to volatility levels, especially concerning yen-sensitive assets and export-driven equity indices. Hedging strategies may change as traders look for undervalued opportunities and seek to protect themselves if talks fall through.
In the next two weeks, watching policy releases and signals from parliament will be essential. Although the negotiation specifics are not public, any changes in Ishiba’s commentary could provide clues about the talks’ direction. We believe these negotiations are unlikely to wrap up quickly. While this may limit short-term uncertainty, it increases the chances of sharp market movements as the deadline approaches.
For those holding directional positions, paying attention to intraday liquidity may be important, especially in mid-July as potential risks emerge. As positions adjust based on new pricing from institutional desks, trading volumes outside domestic hours may become more affected. This is a crucial aspect for derivative strategies linked to overseas supply chains or those requiring bilateral approval.
We expect policymakers to remain low-key. However, if further statements reinforce their current stance, we might see correlated asset classes moving toward cautious positions, with no immediate shift to higher-risk options.
Bullock said the excitement over a 50 bps cut in May was overstated and overlooked.
In May, the Reserve Bank of Australia (RBA) considered a 50 basis points rate cut but quickly moved away from that idea, settling on a 25 basis points reduction instead. The 50 basis points cut was briefly discussed as an option, but it was never a serious choice. The decision to stick with a smaller cut made it clear that there would be no surprises.
