- Japan finmin Kato: no current plans for specific foreign-exchange discussions with Bessent
- Morgan Stanley MUFG: U.S. tariffs pose risk to Japan’s economy
- PBoC moves to expand Offshore Bond access for Chinese Investors
- JPY is very weak on the day
- Australian June 2025 Business confidence +5 (prior +2)
- PBOC sets USD/ CNY central rate at 7.1534 (vs. estimate at 7.1772)
- More on Kevin Warsh interview – wants lower rates
- Japan PM Ishiba: No tariff deal because Japan kept defending what needs to be defended
- Goldman Sachs raises 3-, 6-, and 12-month S&P 500 forecasts
- Trump says may adjust tariffs for some countries
- Trump says “We are going to have to send more weapons to Ukraine”
- Trump says August 1 tariff deadline is firm, but he is open to other ideas
- HSBC says conditions for lasting US dollar rebound still absent
- Goldman Sachs repeats it expects a Federal Reserve rate cut in September (prior December)
- Report – “US offers EU 10 percent tariff deal — with caveats”
- HSBC says rising downside risk to its $65/bbl Brent forecast for 4Q 2025
- Tariff TACO bingo: April 9, July 9, now August 1
- Trump has officially extended his tariff deadline to August 1
- Canada Fin Min asked cabinet members to find tens of billions of dollars in spending cuts
- Former Fed Reserve Governor Warsh says tariffs not inflationary, has sympathy for Trump
- It looks like the PBOC is sweating over the sharp appreciation of the yuan against the USD
- Trump slamming hefty tariffs on … Bangladesh, Bosnia, Serbia, Tunisia, Indonesia
- China eyes plan to ramp up offshore bond purchases via Southbound Connect
- Major indices closed lower as markets react to increase tariff fear
- Forexlive Americas FX news wrap: Trump rolls out higher tariffs for Aug 1 for 7 countries
- Trade ideas thread – Tuesday, 8 July, insightful charts, technical analysis, ideas
Trump tariff headlines continued to shift during the session. The latest twist: the President said his tariff letters are “subject to negotiations” and that the new August 1 deadline is “not 100%.” This adds a fresh layer of uncertainty — giving countries more time to strike deals, but also prolonging unpredictability. So far, tariff deadlines have moved from April 9 to July 9 to August 1, and now appear fluid once again.
The U.S. dollar weakened broadly following the delay announcement, except against the yen. Currencies such as the euro, AUD, GBP, NZD, and CAD all gained ground.
However, the yen underperformed after Trump indicated Japan would be hit with a 25% tariff (albeit not until August 1 … or maybe later), sending USD/JPY to a two-week high and GBP/JPY to its highest level in eight months. The Bank of Japan faces a growing challenge, trying to normalise monetary policy amid slowing growth, with the threat of steep U.S. tariffs casting a shadow over Japan’s export-reliant economy.
From Australia, business confidence data surprised to the upside, with business conditions hitting their highest level since March 2024. Gains were broad-based across sales, profitability, and employment, while confidence rose for a third consecutive month.
Attention now turns to the RBA policy decision, due at 0430 GMT / 0030 US Eastern time. Markets are pricing in a greater than 90% chance of a 25bps rate cut, though the central bank may strike a less dovish tone, reflecting recent solid household spending data and today’s upbeat business survey.
In geopolitics, Trump said: “We are going to have to send more weapons to Ukraine. Defensive weapons. They have to defend themselves.”
This article was written by Eamonn Sheridan at www.forexlive.com.