The US dollar declines amid trade concerns

The dollar fell against most major currencies during trading on Monday, as concerns about the trade war between the United States and other economies grew. Canada announced its decision to cancel its digital services tax targeting American technology companies, just hours before it was due to take effect on Monday, in an attempt to revive stalled trade negotiations with the United States. The dollar index fell 0.6% to 96.8, reaching a high of 97.3 and a low of 96.8.

2025-07-01

2025-07-01

European indices mixed ahead of eurozone inflation data

European indices were mixed ahead of the release of Eurozone inflation data and as the July 9 deadline for countries to reach trade agreements with the United States approaches. During Tuesday's session, the Stoxx Europe 600 index was flat at 541 points, as of 10:24 a.m. Mecca time, amid gains in defense and utilities stocks and losses in the auto sector. While the German DAX was virtually unchanged at 23,902 points, the British FTSE 100 added 0.2% to 8,778 points, and the French CAC 40 fell 0.15% to 7,654 points. Belgian central bank governor Pierre Wunsch said in an interview with CNBC: "There is broad consensus that we are very close to the 2% inflation target, and it's safe to say the mission has been largely accomplished." Markets are awaiting the release of the final reading of the Eurozone Manufacturing Purchasing Managers' Index (PMI) later today, along with the preliminary reading of the change in the Consumer Price Index (CPI) in the bloc's countries.

2025-07-01

The British economy grew at its fastest pace in a year in the first quarter

The British economy grew at its fastest quarterly pace in a year, supported by increased activity in the real estate market ahead of the expiration of a tax exemption and a surge in industrial production in anticipation of new U.S. import tariffs. According to the final reading released by the Office for National Statistics on Monday, the UK's Gross Domestic Product (GDP) grew by 0.7% in the first three months of 2025, in line with the initial estimate. Although March's growth was revised up to 0.4% from 0.2%, the GDP contracted by 0.3% in April, compared to a modest growth of just 0.1% in the last quarter of 2024, according to Reuters. The UK housing market experienced significant activity ahead of the March 31 deadline for a tax exemption available to some buyers, while households dipped into their savings to finance spending. This led to the first decline in the savings rate in two years, although it remained strong at 10.9%. Britain’s manufacturing sector recorded growth of 1.1% in the first quarter of 2025 compared to the last quarter of 2024, benefiting from a ramp-up in production before the U.S. tariff hikes in April

2025-06-30

The dollar fell near its lowest levels in more than 3 years

The dollar declined against major currencies during Monday's trading, hovering near its lowest levels in about four years against the euro, as markets monitored developments in trade negotiations. The U.S. Dollar Index – which measures the performance of the greenback against a basket of six major currencies – fell by 0.25% to 97.16 points as of 09:18 a.m. Mecca time, remaining close to its lowest level in over three years of 96.933 points, recorded last week. The euro edged up by 0.11% to $1.1731, staying near its highest level since September 2021. The British pound also rose by the same margin to $1.3730, while the U.S. dollar dropped about 0.46% against the Japanese yen to 143.99 yen. Amid President Trump's criticism of Federal Reserve Chair Jerome Powell, markets remain focused on the direction of monetary policy. Expectations for the Fed to cut interest rates at least once by a quarter point by September rose to 91.5%, up from 83% a week earlier, according to the CME Group’s FedWatch tool. Attention now turns to the U.S. monthly jobs report due this Friday, which will provide insight into the state of the labor market amid ongoing trade uncertainty. In addition, markets are awaiting the fate of Trump's massive tax cut proposal, which is to be decided by the Senate and, according to estimates by the Congressional Budget Office, could add $3.3 trillion to the national debt over the next decade

2025-06-30

Rise in gold prices from the lowest monthly level supported by a weaker dollar

Gold prices rose from their lowest level in a month during Asian trading on Monday, supported by a weaker dollar, although demand for safe-haven assets remained limited amid easing tensions in the Middle East and optimism over potential U.S. trade deals. Spot gold increased by 0.5% to $3,290.25 per ounce, while August gold futures rose by 0.4% to $3,300.0 per ounce as of 8:00 a.m. Saudi time

2025-06-30