Uncertainty deepens as U.S. President Donald Trump intensifies tariff threats and continues involvement in Ukraine‑Russia and Middle East conflicts, maintaining global tension. Inflation concerns grow over possible tariff-driven price hikes. Still, crypto sentiment remains strong.
Trump claims that 11 of 12 House representatives now support the GENIUS Act—a stablecoin regulatory bill—after its rejection earlier. A full House vote is expected today, alongside the CLARITY Act and Anti‑CBDC Act, which aim to ease the U.S. Securities and Exchange Commission’s (SEC) control over the crypto sector and pave the way for broader reform.
Market movements reflect the divided backdrop. Spot gold (XAU/USD) rebounds to $3,335 after bouncing off a December 2024 trendline near $3,320, snapping a two-day losing streak. Bitcoin (BTC/USD) posts 0.90% intraday gains around $119,000, reversing a pullback from its all-time high.
The U.S. Dollar Index (DXY) stalls near 98.60, while U.S. stock futures pull back after a cautious Wall Street close—though the Nasdaq rose on strong technology stocks.
June’s U.S. inflation data show both the Producer Price Index (PPI) and PPI ex Food & Energy (Core PPI) at 0.0% month-on-month, below the expected 0.2%. On a year-over-year basis, headline PPI eased to 2.3% from 2.6%, and Core PPI fell to 2.6% from 3.0%. This adds to a softer picture following CPI and Core CPI readings reported previously, reinforcing the Federal Reserve’s data-dependent approach, even as Trump presses for interest rate cuts and speculation swirls about Federal Reserve Chair Jerome Powell’s resignation by August.
Trade tensions also simmer: Trump cites progress in talks with Vietnam and Indonesia, while Mexico threatens retaliation over a proposed 30% tariff and 17% anti-dumping duty on tomatoes effective August 1, and the European Union warns of its own countermeasures. Trump plans to meet U.K. Prime Minister Keir Starmer to firm up trade deals, and Canada’s Prime Minister Mark Carney confirms U.S. tariffs will remain in force, promising a robust response.
Elsewhere, Trump has denied suggestions that he urged Ukraine to attack Moscow, stating he remains neutral and aims to stop the violence. In Asia, China’s Vice Premier He Lifeng signals more stimulus ahead despite recent positive economic data, suggesting policy support remains intact.
Looking ahead, markets will closely monitor Wall Street’s reaction to soft inflation data and escalating geopolitical risks. Gold appears set to extend its rebound off strong support, while Bitcoin traders will be watching closely for House ballots on key crypto legislation.
