- The dollar is strengthening due to Trump's threat to impose additional 10% tariffs.
- The US president has stated that countries supporting the BRICS alliance policy, which is contrary to US interests, will be subject to an additional unconditional 10% tariff.
- Trump has announced that letters regarding tariffs and/or agreements will be delivered on July 7 at 12:00 p.m. ET (6:00 p.m. CEST time).
- In addition, Trump administration officials have confirmed the extension of negotiations on tariffs. Treasury Secretary Scott Bessent said that if no agreement is reached, tariffs will return to April 2 levels on August 1.
- Oil prices fell just over 1.4% during the Globex opening on Sunday evening US time, but the scale of these declines has now been reduced to 0.3%. OPEC+ will increase oil production more than expected: +548,000 barrels per day (+411,000 expected).
- The New Zealand Institute of Economic Research (NZIER) runs a “shadow council” of analysts who advised the RBNZ to keep interest rates unchanged this week in the face of inflation risks. Despite this, the New Zealand dollar is currently one of the worst performing currencies.
- China is limiting government purchases of medical equipment from the European Union as part of retaliatory measures over tariffs.
- The Japanese yen is also losing ground today. In May, real wages fell by 2.9% year-on-year, the sharpest decline in nearly two years and the fifth consecutive monthly decline in inflation-adjusted wages. These data currently limit the scope for the BoJ to raise interest rates.
- The rise in stock market indices on news of the extension of trade talks is pushing down precious metal prices. Gold is currently down 0.8% and silver 1%.
