HFMarkets (hfm.com): New market analysis services.

[HFM]

Date: 8th July 2025.


AUD Rallies as RBA Chooses a Surprise Rate Pause.



Trading Leveraged products is Risky


The Reserve Bank of Australia kept its official cash rate at 3.85%, surprisingly avoiding another interest rate cut. Previously, analysts were expecting Australia’s central bank to again cut interest rates by a further 0.25% to 3.60%. As a result, the Australian Dollar is the day’s best-performing currency so far.


AUDUSD - RBA Keeps Rates Unchanged


The Australian Dollar rose in value due to the surprisingly hawkish central bank; however, traders tend to speculate a bullish currency against a poorly performing currency. By doing so, traders can avoid two conflicting currencies. The worst-performing currencies over the past 30 days are the US Dollar and the Japanese Yen. Therefore, the AUDUSD and AUDJPY are particularly interesting.


The AUDUSD rose up to 1.05% during this morning’s Asian Session and is forming its first bullish candlestick after 3 days of consecutive declines. The US Dollar continues to come under pressure from its trade policy. The latest developments are related to Japan and South Korea, which will see a 25% tariff imposed from August 1st. Japan has the 7th largest deficit with the US, and South Korea has the 8th largest.


Furthermore, investors had been shorting the US Dollar over the past 2 weeks over expectations of a dovish central bank. According to experts, the US President is likely to put in place a chairman, which is known for his dovish nature and is in line with the current ‘Trump-economics’, but this idea has come under pressure from the latest employment data. The latest employment data read significantly stronger than previous projections.


AUDJPY - JPY Struggles Due To US Tariffs


The Japanese Yen is one of the worst-performing currencies of the day, primarily due to President Trump confirming 25% tariffs on Japan. The AUDJPY rose to its highest level since February 21st.


Following May's surprisingly low inflation and a deceleration in first-quarter economic growth, forecasts for a rate cut became almost universal. In regards to the Reserve Bank of Australia, according to economists, the central bank is likely to pause rate cuts for 3-4 months before continuing to cut rates towards the end of the year.


According to the Governor of the RBA, the committee is looking to wait for confirmation that indeed inflation has fallen and will remain low before cutting rates. This confirms that the RBA is looking to cut, but the timing will depend on inflation over the next months. The country’s inflation rate is currently 2.4%. If the rate remains at this level for a further 2 months or falls even lower at the next release, a rate cut will become more likely.


In terms of technical analysis, the price of the AUDJPY is trading significantly higher than the main moving averages. This indicates the level of demand but also prompts caution as investors consider if the price is overbought in the short term. However, if the price declines back to the 95.291 support level, the AUDJPY will no longer be overbought. As a result, traders may take into consideration buying at the discounted price. The performance of the AUDJPY will also depend on tomorrow’s rate decision from the Reserve Bank of New Zealand, as well as the Federal Reserve’s FOMC Meeting Minutes. If the RBNZ decide to cut as per current expectations, the AUD may find further support.


Key Takeaway Points:


* RBA surprisingly held interest rates at 3.85%, despite expectations for a cut, causing the AUD to strengthen significantly.
* The US Dollar (USD) and Japanese Yen (JPY) are under pressure due to renewed US trade tariff threats (25% on Japan/South Korea from August 1st) and expectations of dovish US monetary policy.
* AUDUSD and AUDJPY are favoured pairs as traders look to go long on the strong AUD against underperforming currencies. AUDJPY hit a high not seen since February 21st.
* The RBA needs further inflation confirmation before resuming rate cuts later this year, indicating a potential pause for 3-4 months.


Always trade with strict risk management. Your capital is the single most important aspect of your trading business.


Please note that times displayed based on local time zone and are from time of writing this report.


Click HERE to access the full HFM Economic calendar.


Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!


Click HERE to READ more Market news.


Michalis Efthymiou
HFMarkets


Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

[HFM]

Date: 7th July 2025.


Oil Prices Drop But Bullish Potential Remains!



Trading Leveraged products is Risky


OPEC members confirm they will increase oil production and output in July and August. As a result, the price of Oil fell 1.40% on Monday, but almost regains its previous losses. According to reports, the higher output is an attempt by OPEC members to regain market share. Oil has largely been trading sideways since June 24th after the 16% decline. What’s next for Crude Oil prices?

US Oil / Crude Oil Chart


OPEC and New Oil Output!


Members of OPEC have seen tensions rise as certain members have been producing more oil than others. As a result, the main topic for discussion during yesterday’s meeting was an increase across all members. This development was the main reason for the day’s bearish price gap.


As Bloomberg reports, Riyadh is trying to win back lost market share by asking to continue the production quota adjustment of 411,000 barrels per day in August, and possibly in the months thereafter. Saudi Aramco has already lowered the price of Arab Light crude for Asian buyers by $0.20 in July. At the same time, eight OPEC+ countries, including Russia, Saudi Arabia, Algeria, Iraq, Kuwait, the UAE, Kazakhstan, and Oman, are slowly lifting their voluntary production cuts, raising output by another 386,000 barrels per day.


Morgan Stanley analysts expect Brent Crude to fall to around $60.20 and Crude Oil to $58.80, with a supply surplus of 1.3 million barrels per day in 2026.


Potential For Regained Bullish Momentum


Regardless of the bearish price gap, traders should note that bullish momentum is being regained. According to many economists, the potential for higher oil prices continues to linger at the back of traders’ minds despite the US actively looking to bring prices lower. This includes stronger-than-expected economic data, particularly from the employment sector.


The US latest employment report came as a shock to investors, and the country’s unemployment rate fell to 4.1%, the lowest since March and significantly lower than the market’s projections. In addition to this, the NFP Employment Change read 35,000 higher than expectations. Higher economic and employment data can justify a higher oil output and keep prices high.


On the other hand, the economy and its outlook will significantly depend on global trade policy. Currently, investors look for confirmation on which countries will see higher tariffs imposed. The current deadline is July 9th. If the policy change triggers a bearish market, the price of Oil is likely to fall.


Lastly, another factor which investors are contemplating is the ability of Iran to enrich and produce nuclear weapons. According to the Pentagon, the recent attacks on Iran set back the nuclear program by 6-12 months. Also, most experts believe the US, Israel and Iran will not be able to make an agreement on the country’s nuclear policy. As a result, is the conflict simply going to resume at a later point? If so, the geo-political tensions could push prices higher as they did in June 2025.


Key Takeaway Points:


* OPEC+ is increasing oil output in July and August to regain market share, leading to an initial dip in prices.
* Despite the output increase, a potential for bullish momentum remains due to stronger-than-expected data, especially in the US employment sector.
* Upcoming global trade policy changes (July 9th deadline) could trigger a bearish market and cause oil prices to fall if new tariffs are imposed.
* Ongoing geopolitical tensions surrounding Iran's nuclear program could push oil prices higher again if conflict resumes.


Always trade with strict risk management. Your capital is the single most important aspect of your trading business.


Please note that times displayed based on local time zone and are from time of writing this report.


Click HERE to access the full HFM Economic calendar.


Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!


Click HERE to READ more Market news.


Michalis Efthymiou
HFMarkets


Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

[HFM]

Date: 4th July 2025.


European Markets Slip Ahead of Tariff Deadline, Wall Street Surges on Jobs Report and Fiscal Optimism.



Trading Leveraged products is Risky


European Equities Slide on Trade Uncertainty


European stock markets edged lower on Friday as investors grew increasingly cautious ahead of a looming US trade policy deadline. With the July 9 expiration of President Trump's 90-day pause on increased tariffs approaching, concerns over unresolved trade agreements weighed heavily on sentiment.


The pan-European STOXX 600 index declined by 0.4% to 541.61 points in early trading, setting course for a weekly loss. Major regional benchmarks across the continent also moved into negative territory, driven by uncertainty over US-EU trade negotiations.


US Markets Rally on Robust Jobs Data and Legislative Progress


President Trump announced that Washington would begin sending formal tariff notifications to trading partners on Friday. These letters will detail the new duties—expected to range between 20% and 30%—on goods exported to the United States. Several key allies, including the European Union and Japan, have yet to secure final trade deals with the US, raising fears of a renewed trade war.


Sector-wise, mining stocks led the losses with a 1.1% drop, followed by a 0.8% slide in technology shares. Meanwhile, France’s Alstom gained 1.1% after landing a €2 billion ($2.4 billion) contract from New York’s Metropolitan Transportation Authority.


US equity markets surged as traders reacted positively to a stronger-than-expected June employment report and growing optimism over fiscal stimulus. The markets closed early on Wednesday ahead of the July 4 holiday, but not before notching record highs.


NASDAQ rose 1.02% to 20,601
S&P 500 climbed 0.83% to 6,279
Dow Jones Industrial Average gained 0.77% to 44,828, near its January peak of 44,882
Investor confidence was further boosted by the passage of the One Big Beautiful Bill (OBBB) in the US House of Representatives. Approved by a narrow 218–214 vote, the sweeping pro-growth legislation is expected to be signed into law by President Trump on July 4, his self-imposed deadline.


The OBBB aims to generate $500 billion in savings over the next decade, defying the Congressional Budget Office’s projection of a $3.3 trillion deficit increase. Key provisions include:


Raising the debt ceiling by $5 trillion
Expanding standard deductions and child tax credit
Reducing taxes on tips, overtime, Social Security, and auto loans
Increasing the SALT deduction cap to $40,000
Blocking a planned $4.5 billion tax hike set for year-end
As equities climbed, volatility dropped, with the VIX falling 1.56% to 16.38. However, US Treasury yields spiked amid strong data and diminished expectations for Federal Reserve rate cuts. The 2-year yield rose 9.5 basis points to 3.88%, while the 10-year yield climbed 7 basis points to 4.35%.


DXY (US Dollar Index) surged to 97.422 before paring gains to close at 97.168, supported by US Treasury Secretary Bessent’s commitment to maintaining a strong-dollar policy.


Oil Prices Ease on Diplomatic Hopes and OPEC+ Output Plans


Crude oil prices retreated slightly on Friday, driven by easing geopolitical tensions and expectations of increased supply from OPEC+.


Brent crude dipped 0.51% to $68.45 per barrel
WTI crude dropped 0.37% to $66.75 per barrel
Oil markets responded to reports that the US and Iran may resume nuclear talks next week, as disclosed by both Iranian officials and US media outlet Axios. Iranian Foreign Minister Abbas Araqchi reaffirmed Tehran’s commitment to the Non-Proliferation Treaty, despite recent tensions and legislation suspending cooperation with the International Atomic Energy Agency.


Looking ahead, traders are closely watching the upcoming OPEC+ meeting, where an additional production increase of 411,000 barrels per day (bpd) for August is expected. Four delegates confirmed the proposed hike as the oil alliance continues efforts to reclaim market share.


Additional Developments: Sanctions and Diplomacy


Adding complexity to the geopolitical picture, the US Treasury imposed fresh sanctions on a network accused of smuggling Iranian oil disguised as Iraqi shipments. Another target included a Hezbollah-linked financial entity.


At the same time, Saudi Arabia’s Defense Minister Prince Khalid bin Salman met with President Trump at the White House to discuss regional de-escalation strategies.


Meanwhile, Barclays revised its oil price forecast upward, citing stronger demand outlooks. The bank now sees Brent crude averaging $72 per barrel in 2025, and $70 per barrel in 2026.


Conclusion: Markets Brace for Trade Decision, but Optimism Lingers


Global markets are at a crossroads, with investors balancing optimism over US economic momentum and fiscal policy against the potential fallout of escalating trade tensions. As the July 9 tariff deadline nears and nuclear talks with Iran possibly resume, both equity and energy markets may experience renewed volatility.


Always trade with strict risk management. Your capital is the single most important aspect of your trading business.


Please note that times displayed based on local time zone and are from time of writing this report.


Click HERE to access the full HFM Economic calendar.


Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!


Click HERE to READ more Market news.


Andria Pichidi
HFMarkets


Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

[HFM]

Date: 3rd July 2025.


Markets Soar as Vietnam Tariff Deal Eases Trade Tensions Ahead of Key Jobs Report.



Trading Leveraged products is Risky


Global financial markets moved higher this week, with Wall Street hitting fresh record highs after President Donald Trump announced a last-minute trade agreement with Vietnam, easing concerns about aggressive tariff hikes. The deal, finalised just days ahead of a July 9 deadline, marks the third such trade accord under the administration’s push for ‘reciprocal tariffs’ and offers a temporary sigh of relief to investors navigating an increasingly volatile global outlook.


But while the headline deal offered a near-term boost to equities, underlying tensions around fiscal policy, global debt burdens, and upcoming US jobs data kept markets on edge.


Vietnam Trade Agreement Lifts Sentiment, but Tariffs Still High


Trump’s announcement confirmed that Vietnamese exports to the US will be subject to a 20% tariff, significantly lower than the threatened 46%, but still more than double historical rates. In return, Vietnam will drop tariffs on US goods.


The agreement arrives amid growing pressure on America’s trading partners to meet Washington’s demands. Dozens of economies, including Japan and the EU, are still racing to finalise similar deals before steep tariff increases take effect on July 9. Trump has already warned Japan that if negotiations fail, tariffs could spike to 30–35%, well above the temporary 10% rate introduced earlier this year.


The broader message: the risk of global tariff escalation remains very real.


Wall Street Breaks Records as Investors Bet on Policy Clarity


US equities cheered the trade progress. The S&P 500 climbed 0.47%, the Nasdaq surged 0.94%, and both closed at new all-time highs. The Dow Jones edged slightly lower by 0.02%. Investors were also buoyed by renewed optimism around Trump’s proposed tax and spending package, which aims to make tax cuts permanent and scale back regulations.


Yet, beneath the surface, uncertainty lingers. Treasury yields climbed as the Senate passed the OBBB bill, stoking fears about deficit spending. The 10-year Treasury yield rose to 4.277%, while the 2-year rate edged up to 3.785%. Bond markets remain sensitive to the growing national debt and the prospect of further supply.


Tax Bill Faces Hurdles, Fuels Fiscal Concerns


Trump’s ambitious tax and spending bill, valued at $3.3 trillion, is facing resistance in the House. While it proposes making earlier tax cuts permanent and includes deregulation efforts, critics warn it would significantly expand the national debt and cut social safety net programs.


These concerns spilt into the bond market, with even Japanese government yields rising, despite a strong 30-year auction. Globally, investors are re-evaluating the balance between stimulus and sustainability.


Dollar Pulls Back, Commodities Gain


Currency markets reflected a mixed mood. The US dollar index (DXY) initially rallied to 97.152 but closed the day lower at 96.787, giving support to commodities. The British pound held firm at $1.3628 after nearly 1% losses the previous day. Political stability returned after UK PM Keir Starmer publicly backed Finance Minister Rachel Reeves, whose emotional parliamentary appearance followed controversy over welfare policy U-turns.


The euro slipped to $1.1788, still near its recent high, while the yen weakened slightly to 143.84 per dollar.


Gold prices firmed, and oil advanced sharply, with Brent crude nearing $69 and WTI above $67, following the Vietnam deal and ahead of this weekend’s OPEC+ meeting, where producers are expected to boost output quotas.


Meanwhile, copper surged to a 3-month high, nearing $10,000 per ton on the London Metal Exchange, as traders scrambled to ship supplies to the US in anticipation of tariffs. LME inventories have fallen to their lowest since 2023, and the rush has pushed the market into what analysts call ‘an emotional frenzy.’ The LME recently stepped in with new rules to manage speculative positions.





Asia Mixed as Tariff Risks and US Data Loom


Asian stock markets were mixed on Thursday. Vietnam’s index rose 0.5% to a 2-year high, while the Vietnamese dong hit a record low of 26,229 per dollar. Japan’s Nikkei fell 0.1%, and Hong Kong’s Hang Seng dropped 1%, though China’s blue chips gained 0.5%.


Investors remain cautious. AMP’s chief economist, Shane Oliver, warned that the Vietnam deal could set a precedent for similarly aggressive trade measures against Europe and Japan.


South Korea’s President Lee Jae Myung also struck a pessimistic tone, saying US negotiations were ‘difficult’ and that a deal may not be reached in time.


All Eyes on US Nonfarm Payrolls


With the July 4 holiday approaching, markets are now laser-focused on Friday’s nonfarm payrolls report. While the consensus points to a 130,000-job increase, recent weakness in the ADP private payrolls, which showed a 33,000-job drop, suggests downside risks. The services sector bore the brunt of the losses, especially in professional, educational, and health services, while leisure and manufacturing saw modest gains.


Bloomberg’s whisper number has already dropped to 98,000, indicating that expectations are being recalibrated. The data could prove decisive in shaping the Federal Reserve’s next move on interest rates.


Conclusion: A Calm Before the Storm?


While markets welcomed the easing of trade tensions with Vietnam, the bigger picture remains uncertain. The threat of broader tariff hikes, unresolved fiscal debates in Congress, and a pivotal US jobs report all loom large. Investors are watching closely, not just for short-term reactions but for clues about the direction of monetary policy, global trade, and commodity demand in the second half of 2025.


Always trade with strict risk management. Your capital is the single most important aspect of your trading business.


Please note that times displayed based on local time zone and are from time of writing this report.


Click HERE to access the full HFM Economic calendar.


Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!


Click HERE to READ more Market news.


Andria Pichidi
HFMarkets


Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

[HFM]

Date: 2nd July 2025.


Canadian Dollar Wobbles as US Tariffs, Weak Economy Hit Loonie.



Trading Leveraged products is Risky


The threat of US tariffs and Trump’s halt to trade talks weighed on the CAD, with the Canadian economy projected to contract. Steady oil prices did little to help, and the Bank of Canada’s hawkish stance was not enough to stem the decline.


On Monday, White House Economic Adviser Kevin Hassett announced that the United States would soon resume trade talks with Canada. The move followed Canada’s decision to suspend a digital services tax targeting US technology companies. The suspension came just hours before the tax was due to take effect, indicating Canada’s efforts to resume stalled trade talks.


The Canadian Ministry of Finance confirmed that Prime Minister Mark Carney and US President Donald Trump would resume trade talks, with a target of reaching a deal by July 21. The positive developments provided a slight boost to the Canadian dollar (CAD).


Oil Price Pressure, US Debt Outlook


On the other hand, crude oil prices are facing pressure. Investors are weighing easing risks in the Middle East versus the prospect of a possible output increase by OPEC+ in August. This could potentially weigh on the Loonie, the commodity-linked Canadian dollar, and could limit further downside for the USDCAD pair.


Meanwhile, if Trump’s ‘One Big Beautiful Bill’ is passed, it is expected to add about $3.8 trillion to the US federal deficit. This widening fiscal imbalance could further weigh on the US dollar (USD) and potentially boost demand for gold as a safe-haven asset.


US Economic Data to Watch


On the economic front, the ISM Manufacturing PMI for June is expected to edge up from 48.5 to 48.8, indicating a slight increase in factory activity. The ADP employment report is also projected to show an increase in private sector job creation, with 85,000 jobs added compared to 37,000 in the previous month.


However, the main focus will shift to Friday’s Non-Farm Payrolls (NFP) report. Expectations point to a slowdown in hiring, with 110,000 jobs added in June, down from 139,000 in May. The unemployment rate is expected to edge up from 4.2% to 4.3%, reinforcing the narrative of a cooling labour market. What do you think, will the NFP report be the main determinant of the US Dollar’s ​​movement this week?


Canadian Dollar Under Pressure: US Tariff Threats, Weak Economy Hit Loonie


The Canadian Dollar (CAD) recently weakened above $1.37 per USD, pressured by a combination of new US tariff threats and trade policy uncertainty. The CAD had previously strengthened, but market sentiment has now turned around. The weakness was triggered by President Trump's announcement that he was ending all trade discussions with Canada over Canada's new digital services tax. Trump also warned of retaliatory tariffs, which immediately rattled exporters and dented confidence in near-term economic growth.





Domestically, the Canadian economy is expected to contract by a 0.1% monthly rate in April and May, highlighting Canada's vulnerability to potential US levies and dampening the outlook for trade-sensitive sectors. Although the Bank of Canada (BoC) kept its policy interest rate at 2.75%, citing strong core inflation and signalling that no further rate cuts are imminent, this hawkish stance has not been enough to counter the pressure from resurgent tariff fears.


From a technical perspective, the intraday bias in USDCAD is neutral after a temporary rebound from 1.3590. Broadly speaking, the pair is still likely to move to the bearish side below 200 bar EMA. On the downside, with a break of the 1.3590 temporary low a retest of the 1.3538 low should be done first. A strong break there would resume a larger decline. For now, the risk remains on the downside as long as the 1.3797 resistance holds, in case of a recovery.


Always trade with strict risk management. Your capital is the single most important aspect of your trading business.


Please note that times displayed based on local time zone and are from time of writing this report.


Click HERE to access the full HFM Economic calendar.


Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!


Click HERE to READ more Market news.


Ady Phangestu
HFMarkets


Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

[HFM]

Date: 1st July 2025.


Markets Rally into Q2 Close – What’s Fueling the Momentum?



Trading Leveraged products is Risky


Treasuries and Wall Street ended June – and the second quarter – with strong momentum, closing firmly in positive territory. A combination of quarter-end buying, investor FOMO, and supportive macro drivers helped fuel the rally. Hopes for Fed rate cuts, easing inflationary pressures, renewed tariff negotiations, reduced geopolitical tensions, and optimism around a potential tax bill all played into the bullish mood.


In the bond market, yields fell notably. The 2-year Treasury yield dropped 3.3 basis points to 3.715%, while the 10-year declined 4.3 basis points to 4.234% — both hitting their lowest levels since May 1. For June, the 2-year yield fell 21 bps and was down 16 bps over the quarter. The 10-year yield matched the 21 bps monthly decline but rose 6 bps over Q2.


Equities pushed higher into fresh record territory. The NASDAQ closed up 0.47% at 20,369, securing its third straight all-time high. The S&P 500 gained 0.52% to finish above 6,200 for the first time, while the Dow Jones rose 0.63% to 44,094 — reclaiming the 44,000 level last seen in February. June delivered over 4% gains for both the Dow and S&P, with the NASDAQ soaring 6.6%. For the quarter, the NASDAQ surged 17.75%, marking its strongest performance since Q2 2020.





Volatility eased further, with the VIX inching up 0.4% to 16.73 but still well below its April 8 spike of 52.33. Meanwhile, the US dollar index (DXY) weakened to 96.802, its lowest since early 2022, slipping from an earlier high of 97.318. Gold rose 1% to $3,308.50 per ounce, while crude oil eased 0.69% to $65.07 a barrel.


Markets reacted positively to news that Canada will withdraw its proposed tax on US tech firms, prompting a resumption of trade talks. President Trump had previously halted the negotiations, calling the tax ‘a direct and blatant attack.’ Investors now speculate that easing tensions could prevent further tariff hikes.


Still, uncertainty lingers. Many of Trump’s tariffs are only temporarily suspended and are scheduled to resume on July 9. Analysts at Deutsche Bank warn that the market rebound could give the administration confidence to revive 2018–2019-style tariff escalations.


Asian Markets Mixed as Global Rally Echoes


Asian markets were mostly in the green on Tuesday, following Wall Street’s back-to-back monthly gains. However, Japan’s Nikkei 225 retreated 1.4% to 39,910.83 despite a better-than-expected Tankan survey showing improved sentiment among large manufacturers.


In China, the Shanghai Composite edged up 0.4% to 3,458.56 as manufacturing and services PMIs both reached three-month highs (49.7 and 50.5 respectively). South Korea’s KOSPI climbed 0.8% to 3,095.67, lifted by rebounding exports, particularly in semiconductors, ships, health products, and electric vehicles — although analysts remain cautious on US auto exports due to tariff headwinds.


Australia’s ASX 200 ticked up 0.1% to 8,545.10, and the Philippine PSEi rose 0.4%. Hong Kong’s markets were closed for the holiday.


In corporate news, tech and M&A headlines fueled gains:


Oracle jumped 4% after CEO Safra Catz revealed multiple multi-billion-dollar cloud deals in the pipeline. GMS soared 11.7% after agreeing to a $5.5 billion cash buyout from a Home Depot subsidiary at $110/share. Rival bidder QXO, which previously offered $95.20/share, saw its stock rise 3.9%, while Home Depot slipped 0.6%. Hewlett Packard Enterprise rose 11.1%, and Juniper Networks gained 8.4% after both companies reached a DOJ agreement that could clear the path for HPE’s $14 billion acquisition of Juniper.


Bank stocks also advanced after the Fed affirmed that major institutions could weather a potential downturn. JPMorgan rose 1%, and Citigroup added 0.9%.


In the bond space, Treasury yields fell ahead of Thursday’s critical nonfarm payrolls report, released a day early due to the July 4th holiday.


In early Tuesday trading, US crude dipped 22 cents to $64.89 a barrel, and Brent lost 21 cents to $66.53. The US dollar edged lower to 143.69 yen, and the euro strengthened slightly to $1.1778.


Gold Prices Surge on Fed Rate Cut Hopes, Dollar Weakness


Gold rallied for a second day as investors positioned for possible Fed rate cuts and trade volatility. August futures climbed 1.09% to $3,343.60 on COMEX. Spot gold was last seen at $3,322.64 in Singapore, up 0.6%.


Traders have priced in increased odds of two rate cuts in 2025. If upcoming jobs data disappoints, Treasury yields could slide further — a scenario typically favourable for gold. Bullion is now up over 25% year-to-date, trading less than $200 below its record high from April.





Trade concerns also remain in focus. The July 9 deadline for resuming suspended US tariffs is drawing closer, adding a layer of uncertainty to the outlook.


The dollar’s recent weakness — down nearly 11% in H1 2025, its worst first-half showing since 1973 — has also supported gold’s advance.


Analysts continue to see an upside for gold. ‘Despite some recent softness, gold has the clearest upside potential if the dollar continues to weaken,’ wrote Vivek Dhar of the Commonwealth Bank of Australia.


Elsewhere in precious metals:


Platinum dipped after a stellar 29% rally in June, driven by supply tightness and speculative demand.
Silver and palladium both edged higher.


Always trade with strict risk management. Your capital is the single most important aspect of your trading business.


Please note that times displayed based on local time zone and are from time of writing this report.


Click HERE to access the full HFM Economic calendar.


Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!


Click HERE to READ more Market news.


Andria Pichidi
HFMarkets


Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

[HFM]

Date: 23th June 2025.


The USD Benefits From Middle East Escalations



Trading Leveraged products is Risky


UK and European Purchasing Managers’ Indexes have been made publicly available but so far are not supporting either currency. So far, the best-performing currency is the US Dollar. The US will release its own PMI report at 13:45 GMT+0. The price of the US Dollar continues to witness the impact of the hawkish Federal Reserve and new escalations within the Middle East.


UK and EU PMI Data


The European PMI reports were the first to be made public. Both French PMI reports fell below expectations and below the previous month’s release. Particularly investors were concerned with the Manufacturing PMI which fell from 49.8 to 47.8. The German Manufacturing PMI read as expected while the Services PMI rose to a 2-month high.


A similar story for the UK, Manufacturing PMI data read higher than expectations while the Services PMI read as expected. However, the Great British Pound index still fell in value despite the report. In addition to this, the Pound also continues to remain under pressure from the Bank of England which held its interest rate at 4.25%, supported by six of the nine governing board members, in response to improved trading conditions following the agreement with the US. The Euro Index is currently trading at 0.56% lower and the Pound at 0.63%.


The Bank of England Governor’s speech tomorrow afternoon, along with Thursday’s address, will play a major role in driving the British Pound. Meanwhile, the Euro will see limited releases, with the German IFO Business Climate standing out as the key focus.


US Dollar And Middle East Escalation


The best-performing currency of the day is the US Dollar which is currently trading 0.69% higher so far today. The first reaction of the US Dollar after the US bombing of Fordow, Natanz and Isfahan was a downward price movement, however, the market since then has significantly risen in value. The US Dollar is currently trading at its highest price on June 11th.


The US Dollar strengthened as geopolitical tensions escalated after US strikes on Iranian nuclear sites triggering a lower risk appetite. However, traders will be closely monitoring the release of the US Manufacturing and Services PMI. Investors expect both PMI reports to be slightly weaker than the previous month, however, this cannot be certain until the release is made public.


EURUSD - Technical Analysis



EURUSD 2-Hour Chart


The EURUSD is currently trading below the 75-period EMA and is currently forming a descending triangle pattern on the 2-hour chart. The descending triangle pattern is known to provide a bearish bias as it trades below the 75-period EMA. However, the price is also trading at the support level. On smaller timeframes, the price continues to trade below the 200-period SMA but is retracing higher. However, the retracement is unable to maintain momentum and is forming lower highs.


Key Price Takeaways:


* USD leads as geopolitical tensions and Fed hawkishness boost demand; up 0.69% today.
* UK and EU PMIs failed to support GBP and EUR despite some stronger readings.
* BoE and ECB speeches/data remain key drivers; markets await US PMI release.
* EUR/USD shows bearish signals, trading below key EMAs in a descending triangle.


Always trade with strict risk management. Your capital is the single most important aspect of your trading business.


Please note that times displayed based on local time zone and are from time of writing this report.


Click HERE to access the full HFM Economic calendar.


Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!


Click HERE to READ more Market news.


Michalis Efthymiou
HFMarkets


Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

[HFM]

Date: 20th June 2025.


The BoE’s Deputy Governor Surprisingly Votes For Rate Cut!



Trading Leveraged products is Risky


The Great British Pound took advantage of the US bank holiday 0.26% in total on Thursday. The GBP was also one of the best-performing currencies of the Asian Session rising against all currencies. However, the outlook in the short term is quickly changing as the UK continues to release more negative economic data.



GBPUSD 3-Minute Chart


Bank of England


A positive release from earlier in the week was the UK inflation rate which read 3.4%, higher than previous expectations (3.3%). However, regardless of the higher inflation reading, the Monetary Policy Committee took a dovish approach. The Bank of England did decide to keep interest rates unchanged, however, 3 members of the committee voted to cut interest rates.


In May 2025, the Bank of England cut its official bank rate from 4.5% to 4.25%. Yesterday, economists were expecting only 2 members to vote for an interest rate cut. Alan Taylor and Swati Dhingra are the two most dovish members of the Monetary Policy Committee. Economists were expecting the two to vote for another interest rate cut. However, Deputy Governor Dave Ramsden also joined the 2 in voting for an interest rate cut. This is considered largely dovish regardless of the decision to keep interest rates unchanged.


UK Economic Data


One of the reasons the Deputy Governor Mr Ramsden chose to cut interest rates instead of a pause was weakening economic data and employment. This morning the UK made public its Retail Sales figures which fell -2.7%, the weakest release in 18 months. The average retail sales figure for the UK in 2025 so far has been +0.8%. Economists were expecting a decline of 0.5%, however, the release of -2.7% is considerably lower than both expectations and the average so far.


Another concern is also the employment sector. The UK’s unemployment claims rose to 1.735 million which is higher than the previous month. The unemployment claims in the previous month were 1.702 million while the UK’s Salary Index has also fallen.


The Bank of England governor did not hold a press conference after the rate announcement. However, the governor is due to speak on the 24th and 26th where investors will for sure request guidance on the future path of interest rates. The UK will also release its Purchasing Managers’ Index on Monday at 08:45 GMT+0.


GBPUSD - Technical Analysis


The price of the Cable was one of the best-performing currencies during this morning’s Asian Session. However, the price fell 0.25% after the release of the UK’s Retail Sales. The price is now trading below the 200 Period Moving Average on the 3-minute timeframe. The price has slightly retraced back towards the 200 Period MA. However, if the price regains downward momentum. For example, below 1.34688, sell signals can again materialize.


Key Takeaway Levels:
* GBP rose during the US bank holiday and Asian session, but gains faded as weak UK economic data emerged.
* BoE kept rates unchanged, yet three members, including Deputy Governor Ramsden — voted for a cut, signalling a dovish shift.
* UK Retail Sales fell -2.7%, the worst in 18 months and well below expectations, adding to economic concerns.
* Unemployment claims rose to 1.735 million, while GBP/USD fell below key technical levels following the retail sales release.


Always trade with strict risk management. Your capital is the single most important aspect of your trading business.


Please note that times displayed based on local time zone and are from time of writing this report.


Click HERE to access the full HFM Economic calendar.


Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!


Click HERE to READ more Market news.


Michalis Efthymiou
HFMarkets


Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

[HFM]

Date: 19th June 2025.


Fed Members Opt For Hawkish Stace Amid Rising Inflation!



Trading Leveraged products is Risky


Gold and the US stock market declines as a result of yesterday’s Federal Reserve rate decision and comments. Since yesterday’s open Gold is trading 1.19% lower, the SNP500 0.35% lower, while the real winner seems to be the US Dollar. Why is the US Dollar on the rise?


The Federal Reserve and US Dollar


The US Dollar Index is trading 0.55% higher from the time the Federal Reserve’s rate decision was made public. The reason for the rise in the US Dollar is the hawkish stance of the central bank. According to the Fed’s report, of the 19 members, seven members believe the monetary policy will not change at all in 2025. Previously, the number of members supporting this option was four.


However, according to economists, the most likely outcome is two rate cuts in 2025. The first takes place in September (0.25%) and the second later in the year. According to Fed Chairman, Jerome Powells, the interest rates will continue to depend on the upcoming data. Although, the data according to the Federal Reserve is going to prompt a hawkish stance. According to the Fed’s projections, economic growth is likely to fall to 1.4% while inflation will rise to 3%. This is due to tariffs and higher oil prices.


This increases the possibility of no rate cuts in 2025. Nonetheless, the employment sector will hold the key if the Federal Open Market Committee starts to consider a cut. Yes, the Fed will be reluctant to cut rates while inflation rises, however, they may not be willing to risk an imbalance in the employment sector or even a recession. Currently, the Unemployment Rate in the US has remained at 4.2% for the past three months. On the other hand, the number of unemployment claims added weekly continues to slowly rise.



US Dollar Index 1-Hour Chart


Today is a bank holiday in the US and no major economic data will be made public. Due to this, investors may also see slightly lower volatility levels due to less orders. Tomorrow the US will release the Philly Fed Manufacturing Index which is known to trigger moderate volatility levels.


Currently, all indices are trading lower while risk indicators trade higher. As a result, the US Dollar is also benefiting from a risk-off appetite within the market. Currently, the US Dollar is the best-performing currency while the New Zealand and Australian Dollars are the worst.


Lastly, investors should note that the possibility of the US attacking Iran seems to be increasing. Democrats insist that Trump must seek congressional approval before engaging in potential military action against Iran. Experts advise the possibility of US involvement is currently 50:50. When the US previously bombed Libya in 2016 the US Dollar significantly declined.


US Dollar Index - Technical Analysis


The price of the US Dollar Index is trading higher this morning but it is forming a head and shoulder pattern. This provides a slight indication of a retracement, however, if the price rises above 98.67, the head and shoulder pattern will no longer be relevant. The price on a 2-hour timeframe is also trading above the 75-Period EMA indicating buyers are regaining control. The next resistance level on the index can be seen at 99.30.


Key Takeaway Levels:


* The US Dollar Index rose 0.55% after the Fed signalled fewer rate cuts in 2025, with seven members now expecting no cuts, up from four.
* Gold is down 1.19% and the SNP500 is down 0.35% following the Fed’s decision, reflecting market risk-off sentiment.
* The Fed projects slower growth (1.4%) and higher inflation (3%) due to tariffs and oil prices, but the job market remains a key factor for future rate decisions.
* Growing speculation about potential US military action against Iran adds uncertainty, supporting the USD as a safe-haven asset.


Always trade with strict risk management. Your capital is the single most important aspect of your trading business.


Please note that times displayed based on local time zone and are from time of writing this report.


Click HERE to access the full HFM Economic calendar.


Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!


Click HERE to READ more Market news.


Michalis Efthymiou
HFMarkets


Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

[HFM]

Date: 18th June 2025.


Global Markets Rattled by Escalating Middle East Tensions and Oil Price Surge.



Trading Leveraged products is Risky


Global financial markets experienced heightened volatility so far today as escalating tensions between Israel and Iran spooked investors, pushing oil prices higher and sending mixed signals across equities, currencies, and bond markets.


Oil Prices Rise as Middle East Conflict Deepens


Oil prices edged higher on Wednesday, building on Tuesday’s sharp 4% surge. US benchmark crude climbed to $75 per barrel. Investors are increasingly concerned that the conflict could disrupt the Strait of Hormuz—a critical passageway for global crude exports. Although previous regional tensions have led to brief oil price spikes without long-term supply issues, the intensifying rhetoric this time is triggering stronger reactions.


Trump Issues Dire Warning to Iran


Investor fears were exacerbated after former President Donald Trump called for the immediate evacuation of Tehran, escalating tensions further. Within hours, Trump went from advocating a nuclear deal to demanding ‘UNCONDITIONAL SURRENDER,’ hinting at imminent US intervention. As geopolitical risks soared, demand for traditional safe havens such as the US dollar and Treasuries spiked.


Investors were also left disappointed by the lack of progress at the recent G7 summit in Canada. The group failed to make headway on trade issues, just weeks ahead of Trump’s July deadline for additional tariffs. Trump criticized both Japan and the EU for being ‘tough’ negotiators and for not offering satisfactory deals.


US Markets Close Lower; Asian Markets Mixed; Japan Shrugs Off Export Slump


Wall Street sank under the weight of surging oil prices and disappointing US retail sales data. The S&P 500 fell 0.8% to 5,982.72, the Dow dropped 0.7% to 42,215.80, and the Nasdaq slid 0.9% to 19,521.09. Weak consumer spending raised concerns that the backbone of the US economy might be faltering. Additionally, solar stocks took a hit after speculation that Congress may phase out clean energy tax credits. Enphase Energy dropped 24%, while First Solar lost 17.9%.


Asian equities painted a mixed picture. Tokyo’s Nikkei 225 rose 0.7% to 38,803.10 despite data showing an 11% drop in Japanese exports to the US, primarily due to tariffs on autos. Meanwhile, Hong Kong’s Hang Seng fell 1.2%, the Shanghai Composite slipped 0.2%, and Australia's ASX 200 lost 0.2%. South Korea’s Kospi managed a 0.6% gain.


Fed Meeting in Focus; Minimal Forecast Adjustments Expected


The Federal Reserve began its two-day policy meeting, with markets broadly expecting no rate changes. Forecast updates due Wednesday are likely to include modest GDP upgrades but little change to inflation and unemployment projections. The Fed’s previous dot plot suggested two rate cuts per year through mid-2027, and little deviation is expected in the June update.


Dollar Finds Footing Amid Global Jitters


The US dollar regained its safe-haven appeal, rebounding nearly 1% against the yen, Swiss franc, and euro since late last week. While structural challenges tied to Trump’s trade policies have weighed on the greenback in 2025, investors continue to favour the dollar in times of global stress. The dollar edged down 0.2% to 144.90 yen on Wednesday, while the euro ticked up 0.2% to $1.150, and the British pound strengthened to $1.346 following softer-than-expected UK inflation data.


Outlook: Risk Sentiment Hinges on Geopolitics and Fed Clarity


Markets remain on edge as geopolitical tensions in the Middle East show no sign of abating. Meanwhile, all eyes are on the Fed’s policy statement and projections for clues on the central bank’s outlook. As uncertainty swirls, volatility is expected to persist across commodities, currencies, and equities in the short term.


Always trade with strict risk management. Your capital is the single most important aspect of your trading business.


Please note that times displayed based on local time zone and are from time of writing this report.


Click HERE to access the full HFM Economic calendar.


Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!


Click HERE to READ more Market news.


Andria Pichidi
HFMarkets


Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.