U.S. Economic Indicators and Federal Reserve Outlook

🔸 🇺🇸 U.S. Economic Indicators and Federal Reserve Outlook
The U.S. dollar experienced a brief surge following a stronger-than-expected June jobs report, which showed non-farm payrolls increasing by 147,000 and a decline in the unemployment rate. This data led to a reassessment of expectations for a Federal Reserve rate cut in July, with traders now anticipating potential rate adjustments later in the year. 

🌐 Global Trade Tensions and Tariff Developments
President Trump's announcement of potential new tariffs, set to begin as early as July 9, has introduced uncertainty into the markets. The proposed tariffs could range from 10% to 70% and may affect countries that have not finalized trade agreements with the U.S., including Japan and South Korea. This development has led to a cautious sentiment in global markets, with equities in Asia and Europe experiencing declines. 

🇮🇳 Indian Rupee Dynamics
The Indian rupee has weakened against the U.S. dollar, influenced by the robust U.S. jobs data and the resulting shift in Federal Reserve rate expectations. The rupee briefly dipped to 85.50 before stabilizing around 85.33. Additionally, the Reserve Bank of India's decision not to increase liquidity withdrawal has contributed to downward pressure on forward premiums. 

📊 Currency Pair Highlights
EUR/USD: The pair is approaching resistance near 1.1730 after a strong June rally. Traders are monitoring for potential breakouts amid heightened volatility. 

GBP/USD: Historically, July has been a bullish month for GBP/USD. The pair is currently consolidating, with potential for continued gains if it breaks above key resistance levels. 

USD/JPY: The dollar has trimmed gains against the yen, with the pair trading around 144.31. Market participants are watching for further developments in U.S.-Japan trade negotiations. 

📅 Upcoming Events to Watch
July 9: Deadline for new U.S. tariffs to take effect. Markets are closely monitoring for announcements of trade agreements or the implementation of tariffs, which could significantly impact currency valuations.

July 30-31: Federal Reserve meeting, where decisions on interest rates will be made. The outcomes will be pivotal for USD-related currency pairs.