Author: 24newz

Federal Reserve Chair Jerome Powell’s latest testimony to Congress indicates that the central bank is adopting a wait-and-see approach on interest rates, with no immediate plans to cut. Persistent inflation pressures and evolving trade tensions between the U.S. and China have led the Fed to stick with its data-driven strategy, allowing for flexibility as economic conditions unfold. Investors are now eyeing September as the earliest window for any potential policy shift.

Trade tensions between the U.S. and Europe are heating up, as former President Trump threatens to impose tariffs of up to 50% on European goods. In response, the European Union is preparing retaliatory tariffs targeting key American exports such as Boeing aircraft and soybeans. With the July 9 negotiation deadline fast approaching, global markets are on edge. Investors are closely watching the situation, as heightened trade disputes could rattle the Hong Kong stock market and weigh on the broader global economy.

A growing divide is emerging within the Federal Reserve as Governor Michelle Bowman signals support for a potential rate cut in July—marking a sharp contrast to Chair Jerome Powell’s more cautious stance. With inflation cooling and the labor market showing signs of weakening, investor expectations for an earlier rate cut are building. Interest rate futures now suggest there’s over a 60% chance of a move as soon as September. All eyes are now on the July FOMC meeting, which could play a pivotal role in shaping global capital flows and influencing Hong Kong dollar interest rate trends.

Former U.S. President Donald Trump announced on Truth Social that Israel and Iran have reached a preliminary ceasefire agreement, set to take effect in phases starting at midnight on Monday. The announcement has drawn global attention, coming just two days after a joint U.S.-Israel airstrike targeted Iranian nuclear facilities. While the news offers a glimpse of hope for peace in the region, experts caution that the next 24 hours will be critical in determining whether the ceasefire marks the true end of hostilities or merely a temporary pause before further escalation.

This week, the Australian dollar (AUD) has climbed back above the 0.6400 mark against the US dollar (USD), supported by easing geopolitical tensions and softer-than-expected U.S. economic data. As market risk appetite improves, high-yielding currencies like the Aussie are gaining traction.

Although the broader trend for AUD/USD remains downward in the short term, a firm hold above the 0.6345 level could open the door for a potential test of resistance at 0.6475 and 0.6515.

Traders should remain focused on upcoming U.S. economic indicators and any policy signals from the Federal Reserve, as these will be key drivers for currency markets in the coming weeks.

Thanks to signals from the Federal Reserve hinting at possible rate cuts and escalating tensions in the Middle East, the British pound has seen a strong rebound in recent days, briefly touching 1.3500 against the US dollar. Growing expectations of a weakening dollar have fueled renewed strength in the pound. Technical indicators suggest there’s still room for upward movement, but ongoing geopolitical risks mean investors should tread carefully.