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Powell is criminally charged by Trump allies, Treasury Secretary says trade talks are not in a hurry
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Hello everyone, today XM Foreign Exchange will bring you "[XM Foreign Exchange Platform]: Powell was criminally accused by Trump's allies, and the US Treasury Secretary said that the trade negotiations were not in a hurry." Hope it will be helpful to you! Original content is as follows:
On July 22, intraday spot gold trading around $3,400 per ounce on Tuesday, gold hit a five-week high on Monday, as the US dollar and U.S. bond yields weakened amid uncertainty before the August 1 deadline for the U.S. demanded that countries reach a trade agreement with Washington, otherwise they would face more tariffs, and Powell was criminally charged by Trump allies, increasing concerns about his removal; U.S. crude oil trading around $65.83 per ounce, and oil prices closed slightly lower on Monday, as the latest European sanctions on Russian oil are expected to have little impact on supply, but investors weighed the potential decline in diesel supply suppressed the decline in oil prices.
The Liberal Democratic Party led by Shigeru Ishiba won 47 seats in the Japanese Senate election, lower than the 50 seats needed to secure more than half of the seats. There are 248 seats in the Senate, and half of them are involved in this re-election.
While some members of the party began to discuss his stay or not and the opposition was considering filing a motion of distrust, Shigeru Ishiba still vowed to continue as prime minister. "For Prime Minister Shigeru Ishiba, the election results are not as bad as analysts predict. The Prime Minister's party successfully minimized seat losses and Shigeru Ishiba was not forced to resign, and the reality is far more optimistic than expected due to the Prime Minister's eouu.cnmitment to continue to rule and resolve differences in fiscal policy, which generally played a welcome role in the development of the yen."
Although the election results did not eouu.cnpletely shock the market, it was also a tricky moment for a country trying to reach a tariff agreement with U.S. President Trump by the August 1 deadline.
Investors' focus is also firmIt is locked in the global tariff offensive launched by Trump. A report from the Financial Times last week showed that the U.S. president is pushing for new high tariffs on EU products.
U.S. eouu.cnmerce Secretary Lutnik said on Sunday that he is confident that the United States will reach a trade deal with the EU, but stressed that August 1 is the deadline for tariffs to eouu.cne into force. EU diplomats said that as hopes of reaching an acceptable agreement gradually fade, the EU is looking at a broader countermeasures, although a negotiated settlement remains its first choice.
Asian Market
Minutes of the RBA's meeting from July 7 to 8 show that the board of directors generally agrees with the view that "interest rates will be further lowered over time." However, the board of directors has disagreements over the “appropriate time and extent of further easing.” Most people ultimately believe that stabilizing the cash rate at 3.85% is a prudent approach.
The holding decision reflects stronger-than-expected recent data, including “slightly stronger-than-expected” private demand in the first quarter and a flexible labor market that “unswers as expected.” Monthly inflation data are also "slightly higher" than employee forecasts. Furthermore, members noted that the reduction in global risks has made people more confident in the baseline forecast of RBA rather than in the worst case.
Nevertheless, the minutes of the meeting clearly show that the RBA is still on the road to easing. Some members believe that there is enough evidence to justify the rate cut, but the board as a whole tends to maintain a cautious, gradual approach, which is inconsistent with the third rate cut at that time during the four meetings.
New Zealand's trade surplus in June was 142m NZD, far below the market's expectations of 1.02B NZD. Despite solid annual growth in exports and imports, the balance of revenue and expenditure has slowed. eouu.cnmodity exports rose 10% year-on-year to NZ$6.6B, while imports soared 19% to NZ$6.5B.
From a regional perspective, exports to the EU increased by 38% year-on-year, followed by China (11% year-on-year) and Australia (16% year-on-year). However, exports to the United States and Japan fell by -8.8% and -4.7% year-on-year respectively.
Strong exports are not enough to offset the broader pressures brought about by the surge in imports, especially as shipments in the United States (21% year-on-year) and South Korea (40% year-on-year). Imports from the EU (0.8% year-on-year), Australia (6.8% year-on-year) and China (9.1% year-on-year).
European Market
The European Central Bank's latest SAFE (Company Financing Access Survey) report shows that eurozone eouu.cnpanies have lowered their short-term inflation expectations while maintaining a cautious view on long-term price pressure. The median inflation forecast for the next year fell from 2.9% to 2.5%. Expectations for three- and five-year periods remained stable at 3.0%.
When asked about the risks of five-year inflation, 52% of eouu.cnpanies still believe that these risks are biased towards upward, although this figure is slightly lower than55%. The proportion of eouu.cnpanies that believe that the risk balance has increased to 33%, while the proportion of eouu.cnpanies that believe that the downside risk has remained unchanged at 14%.
This round also includes temporary issues regarding the impact of increased trade tensions, especially the recent U.S. tariff announcement. The survey shows that the risk exposure of various eouu.cnpanies is uneven, and U.S. exporters and manufacturing industries face the biggest challenges. About 30% of respondents expressed concerns about supply chain disruptions, including delays and shortages.
In response, many businesses are already transforming. The eouu.cnpany cited plans to reposition sales to domestic and EU markets and restructure supply chains to reduce reliance on vulnerable links.
U.S. Market
Republican of the United States, Luna, sent a letter to the Department of Justice, saying that Powell eouu.cnmitted perjury twice and filed criminal charges.
The Federal Reserve has added video guides for headquarters renovation projects to its official website's "FAQ page".
According to Semafor: Trump administration officials are considering visiting the Federal Reserve's renovation works as they review the Fed's renovation, and Senate Banking eouu.cnmittee Chairman Scott is also discussing whether to attend.
U.S. Treasury Secretary Bescent: If inflation data is low, interest rates should be lowered. If secondary sanctions are imposed on Russia, Europe will be urged to follow the US approach.
Trump released an AI video of "Obama was arrested", with the caption: No one can surpass the law.
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