- EUR/USD is trading below 1.1300 amid new US threats of tariffs.
- AUD/USD has shrugged off a second consecutive interest rate cut by the RBA.
- Bitcoin and other cryptocurrencies extend their decline.
Here is what you need to know on Tuesday, July 2nd, the European session
- The US is mulling tariffs against the EU amid the Airbus-Boeing dispute. EUR/USD is under pressure. It seems that Trump quickly moved on after reaching a truce with China.
- German retail sales disappointed with -0.6%, adding to the pressure.
- Uncertainty looms around the top EU jobs. Leaders resume talks today but a decision about the next ECB president may take time. The EC has to contend with Italy's budget.
- Australia: The RBA has cut interest rates as broadly expected and left the door open to more reductions. The message in the statement was mixed and Governor Phillip Lowe will speak later and may shed more light on the next moves. AUD/USD dipped but recovered swiftly.
- UK: Construction PMI is due today after yesterday's manufacturing PMI missed with 48 points.
- UK politics: Boris Johnson and Jeremy Hunt remain have both promised significant spending as they clash over the leadership of the Conservative Party.
- Oil prices have "sold the fact" after OPEC and non-OPEC countries have agreed to extend their production cuts. Concerns about global demand weigh.
- Bitcoin plunges below $10,000 as the cryptocurrency sell-off extends. There is no single downside driver.*
- Gold is stable below $1,400.
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