RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
The euro fell to a three-week low on Monday, while the Mexican peso weakened after U.S. President Donald Trump threatened to impose 30% tariffs on imports from the European Union and Mexico starting August 1. Trump posted letters to EU Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum on Truth Social outlining the tariffs.
Both the EU and Mexico criticized the tariffs as unfair and disruptive. In response, the EU said it would extend its suspension of countermeasures until early August while pursuing a negotiated resolution.
Currency market reaction was relatively muted. The euro dipped 0.15% to $1.1675, and the U.S. dollar gained 0.2% against the Mexican peso, trading at 18.6630. The British pound was little changed at $1.3485, while the Japanese yen strengthened slightly to 147.27 per dollar. The Australian dollar edged up to $0.6575, and the New Zealand dollar slipped 0.07% to $0.6004.
Analysts note that markets appear increasingly desensitized to Trump’s trade threats. Despite the tariff announcement, U.S. stocks remain near record highs, and the dollar’s movement has been limited. Taylor Nugent of National Australia Bank remarked on the difficulty of pricing in tariff impacts amid ongoing negotiations, especially since a July 9 reciprocal tariff deadline passed without changes.
In a separate development, Trump again called for Federal Reserve Chair Jerome Powell to step down, raising concerns about central bank independence. Traders now await key U.S. inflation data due Tuesday, which may shape future rate cut expectations. Markets are currently pricing in just over 50 basis points of Fed easing by year-end. China’s second-quarter GDP figures, also due Tuesday, are expected to show slower growth amid rising U.S.-China trade tensions.
