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The Euro (EUR) is weak, down 0.7% against the US Dollar (USD) and underperforming all of the G10 currencies with the exception of NZD, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret report. EUR is underperforming following US/EU trade agreement”Markets are responding to news of a US/EU trade agreement, reached over the weekend, that will see the imposition of a 15% tariff on most US imports from the EU.” “While positive for market sentiment and risk more broadly, the news poses a challenge for policymakers at the ECB. The central bank’s tone has recently shifted decidedly neutral, shedding a…

The rupee pared initial gains and settled for the day 15 paise lower at 86.67 (provisional) against the US dollar on Monday, as month-end dollar demand from importers continued to keep the American unit well bid.Forex traders said investors traded cautiously awaiting the outcome of India-US trade talks ahead of the August 1 deadline. Moreover, a negative trend in the domestic equity markets dented investors’ sentiments further. Investors also remained cautious ahead of the US Federal Reserve and Bank of Japan’s monetary policy decisions next week, they said.At the interbank foreign exchange, the domestic unit opened at 86.47 against the…

The rupee appreciated 9 paise to 86.43 against the US dollar in early trade on Monday, tracking a softer greenback, though the upside for the local unit was limited as US-India tariff negotiations remained in focus. Forex traders said the rupee was trading in a narrow range as the demand for dollar from importers continued to keep the American unit well bid against the rupee. Moreover, the support from developing trade agreements was negated by the sustained foreign fund outflows, they said. At the interbank foreign exchange, the domestic unit opened on a positive note and touched 86.43 against the…

EUR/USD boosted by signs of imminent US–EU deal ahead of August 1 deadline.US Durable Goods Orders miss, but jobless claims stay strong, supporting Fed hold expectations.ECB holds rates steady; next week’s focus shifts to key Fed policy decision on July 30.The EUR/USD finished the week up by nearly 1% on Friday, yet ended the daily session flat, following economic data from the United States (US) that was worse than expected, but offset by positive trade news. With the Greenback cutting losses, the pair trades at 1.1741 virtually unchanged.Sentiment remains upbeat as the latest trade news suggests that the US and…

President Trump touted a preliminary trade deal with Japan earlier this week.Trade terms may be far less agreed-upon than White House officials led markets to believe.The announcement that Japan would invest $550B in US businesses for only 10% of the profits may have been premature.Japanese officials quietly hit newswires on Friday to tamp down market expectations.United States (US) President Donald Trump proudly declared an impending trade deal between the US and Japan earlier this week, touting an arrangement that would see US importers pay a much milder 15% tariff fee on all goods imported from Japan compared to the threatened…

The Dow Jones is clawing back recent losses as investor sentiment continues to climb.Traders continue to bank on an eventual walk back of the Trump team’s sky-high tariff threats.Trade deals remain limited, and the August 1 deadline is approaching fast.The Dow Jones Industrial Average (DJIA) rebounded on Friday, recovering its footing after a mild downturn during the previous session. Q2 earnings broadly beat the street this week, sending most major indexes into record highs, but the Dow Jones grappled with some downside in key overweight stocks, crimping the blue-chip average’s top line.Markets rise on milder-than-expected durables declineHeadline Durable Goods Orders…

Gold pressured by robust US labor data and progress on US–EU trade deal.US Dollar rebound and trade optimism curb safe-haven demand, sending XAU/USD to $3,325 low.Traders eye Fed decision, US Q2 GDP, Core PCE, and NFP data in coming week.Gold price (XAU/USD) is poised to end the week on a lower note as economic data from the United States (US) and progress in trade deals with the latter weighed on safe-haven demand, driving the yellow metal lower. Additionally, the Greenback recovered some ground despite falling US Treasury yields. At the time of writing, the XAU/USD trades at $3,336, down almost…

NZD extends losses for the second day on Friday but remains on track for a weekly gain.US President Donald Trump signals “most trade deals are finished,” with talks nearing conclusion with China.US Treasury Secretary Bessent confirms tariff talks with China to resume next week in Stockholm.The New Zealand Dollar (NZD) extends losses for a second consecutive session on Friday but remains poised for a weekly gain, supported by improved risk sentiment amid growing optimism over potential US trade deals. A mid-week bounce in the Greenback, underpinned by strong US economic data and firm expectations that the Federal Reserve (Fed) will…

West Texas Intermediate declines as Venezuela and OPEC+ increase concerns about oversupply.Clarity on US–EU and US–China trade talks may guide the direction of WTI.WTI Crude Oil drops below $65.00 as technical pressure aligns with rising supply outlook.West Texas Intermediate (WTI) is under pressure on Friday as markets respond to a growing global supply outlook and remain cautious on demand prospects.At the time of writing, WTI is trading below $65.00, with daily losses exceeding 1.50%.The market is reacting to the prospect that Venezuela could resume Oil exports, following the US decision to reinstate Chevron’s license to operate in the country. The move…

The Canadian Dollar fell even further against the Greenback on Friday.Trump has pivoted back to tariff threats on Canada as trade deals remain limited.The tariff deadline of August 1 is fast-approaching, and Canada has shown little movement thus far.The Canadian Dollar (CAD) took another hit on Friday, extending into a two-day backslide against the US Dollar (USD) as Loonie traders hunker down for a fresh bout of tariff-fueled tirades from United States (US) President Donald Trump. The Trump administration’s self-imposed deadline of August 1 for steep “reciprocal” tariffs, which have been announced, delayed, and then delayed again, is approaching quickly.…