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Trump threatens to significantly increase India's tariffs, turning to the service industry
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Hello everyone, today XM Foreign Exchange will bring you "[XM official website]: Trump threatens to significantly increase Indian tariffs and shift his focus to the service industry." Hope it will be helpful to you! The original content is as follows:
On August 5, during the Asian market on Tuesday, spot gold trading around $3,378.50/ounce, gold prices rose for the third consecutive trading day on Monday, after last week's economic data stimulated expectations of the Fed's interest rate cut, and Trump's pressure on India also increased the market's risk aversion; U.S. crude oil trading around $66.30/barrel, oil prices fell to the lowest level in a week on Monday, after OPEC+ agreed to increase production again in September, which aggravated the market's concerns about oversupply, and previous U.S. data showed that fuel demand in the largest consumer country was unremarkable.
The US dollar rebounded slightly on Monday, rectifying its recent trend. Three important events affecting the market last Friday highlighted the vulnerability of the dollar: poor U.S. jobs report performance, a resignation of a Federal Reserve director, and President Trump's firing of a bureau chief. These situations hit the dollar, prompting investors to step up bets on the Fed's upcoming interest rate cut.
But analysts say the dollar’s rebound on Monday could be short-lived, given uncertainty in U.S. decision making and finally cracking in the U.S. economy, a wide-scale decline could reappear.
Last Friday data showed that U.S. job growth in July was lower than expected, while non-farm jobs were significantly downgraded by 258,000 in the first two months, indicating a sharp deterioration in labor market conditions.
MonexUSA head of trading Juan Perez said: "The United States appears to be experiencing a slowdown in various industries that are beginning to question the benefits of restricting overseas production and procurement."
He added: "While U.S. economic indicators suggest that the Fed may provide support through interest rate cuts, the world has not shown much.Optimism. ”
Asian market
Caixin.com’s latest data released on Tuesday showed that the China Services Purchasing Managers Index (PMI) unexpectedly jumped to 52.6 in July and 50.6 in June. Market forecasts print volumes during the reporting period of 50.2.
European market
Investor confidence in the euro zone was severely hit in August, with the Sentix investor confidence index plummeting from 4.5 to -3.7, well below the expected 6.2. The status index fell further to the negative area, from -7.3 to -13.0. The expected index fell sharply from 17.0 to 6.0. Germany’s data is even more disturbing: the overall index fell from -0.4 to -12.8, the current situation The slump from -18.8 to -29.0, with expectations plunging from 19.8 to 5.0.
Sentix said the emotional collapse reflects investors' early judgment on the EU-U.S. tariff agreement—an assessment that is "destructive". Instead of providing clarity or relief, the agreement has sparked renewed concerns about the eurozone export sector. Recent optimism about the German recovery is now questioned, and export-oriented industries are expected to face greater pressure in the xm-forex.coming months. Investors are also increasingly worried about the rise in EU government debt across the board.
To make matters worse, inflation shows no signs of easing. Sentix's inflation-themed index fell to -11.75, strengthening the limited space for the ECB to further relax policy. The view. As market sentiment worsens, debt concerns intensify and inflation easing does not see obvious signs, the eurozone's recovery path looks increasingly fragile.
Swiss CPI was stronger than expected in July, with overall inflation remaining flat on the month-on-month, while expecting a decrease of -0.2% on the month-on-month. Core CPI (excluding fresh and seasonal products, energy and fuels) fell slightly -0.1% on the month-on-month, while domestic product prices rose 0.2% on the month-on-month, and imported product prices fell -0.9%.
On the year-on-year, the overall CPI rose from 0.1% to 0.2%, which was also higher than the year-on-year forecast. Core CPI accelerated from 0.6% to 0.8%. Inflation rate of total domestic product production stabilized at 0.7% year-on-year, while imports Product prices, although still negative, improved from -1.9% to -1.4% year-on-year.
Today's data slightly eases concerns that Switzerland is resuming a xm-forex.complete deflation. There have been speculation that the Swiss National Bank may return to negative rates after a series of rate cuts to drop policy rates to 0.00%. But the rise in inflation in July may buy time for policy makers to ahead of the next meeting on September 25.
In the context, the Swiss franc weakened slightly as global markets stabilize and trade tensions eased, helping to alleviate deflationary pressures. If the August CPI data improves further, expectations may turn to a steady maintenance in September rather than adjusting policies again.
U.S. market
Trump said it would significantly raise India's tariff rates as the country buys Russian crude oil. India responded that the accusation was unreasonable.
Federal Daly: The time for a rate cut is approaching, and the number of interest rate cuts this year is more likely to be greater than two.
Trump: A candidate will be announced in the xm-forex.coming days to fill the vacant Fed's position as director.
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