US launches global tax strategy, Iran nuclear deal enters “final stretch”
On July 17, US President Donald Trump shocked the financial market when he publicly warned will impose tariffs on 10% on many small countries, stressing that the “tariff letter” will be released as early as this week.
Simultaneously, US and EU set deadline by end of August to achieve Iran nuclear deal, if it fails, it will trigger a “snapback mechanism” – that is, the restoration of all sanctions that were lifted under the 2015 agreement. This is the first time the parties have publicly agreed on a deadline, showing that the negotiation process has entered its most intense and intense phase.
Notably, the US also threatened withdraw from the International Energy Agency (IEA) for allegedly being “overly biased towards the green transition”.
Fed, ECB simultaneously signal to keep interest rates
Boston Fed President Collins said US inflation likely to remain around 3% and the Fed should continue to keep interest rates stable. She warned, the global tariffs If enacted, it will increase domestic consumption costs.
Bundesbank President Nagel also spoke out in support of the policy. euro zone interest rates maintained, despite pressure from energy prices and spillover effects from US policies.
Financial Moves: Gold, USD, Oil and Bond Markets
- Gold price world ease on 3,330 USD/oz, under pressure from strong dollar and CPI higher than expected.
- USD Index increased 0.55% to level 98,616, putting pressure on EUR, GBP, JPY and CHF.
- WTI Oil down to $66.52/barrel; Brent down to 68.71 USD/barrel.
- US Crude Oil Inventories unexpectedly rose 839,000 barrels, contrary to expectations of a decrease.
Trump announces huge investment, troop withdrawal and avoids escalation in Ukraine
President Trump declared that large corporations like Google, Blackstone will invest more $92 billion in AI and energy in Pennsylvania.
He also announced draft decree allowing pension funds to invest in private assets – a move that breaks traditional financial norms.
On security, the US decided withdraw 2,000 National Guard troops from Los Angeles amid rising immigration tensions. Meanwhile, the US declared no long-range missiles to Ukraine and warning not to attack Moscow, to avoid escalation with Russia.
Middle East – Asia: Tension and Reform
- UAE and Iran had a rare phone call to promote regional stability.
- Houthi forces attack two Israeli military targets, while Israel continues air strikes in Syria, making the situation more complicated.
- Korea propose crypto capital gains tax, tax rental income and expand the foreign exchange market.
- Japan note Slight increase in manufacturing confidence, but the auto industry remains under pressure from US tariffs.
Market Forecast: Cautious but with Opportunities
- Probability of Fed keeping interest rates unchanged in July up to 97.4%; September is likely to decrease by 25 basis points: 53.5%.
- WTO warns: Global trade growth may slow due to new US tax policy.
- Yellow may continue to increase in the long term if trade war and monetary easing is activated.
Trump’s global tax policy, the Iran-EU-US nuclear talks entering a decisive phase and the consensus of major central banks are the key factors driving global markets this week. Investors should pay special attention to Deadline August, when a series of major decisions will be announced.
📲 Track the fastest financial market developments at Livetrade Pro application Download now
