Markets on hold, eyeing tariff implementation

Investors eyeing tariff deadline

Asian trading was tight-ranged in the aftermath of the US Independence Day holiday, with investors keeping one eye on tomorrow’s deadline when the US introduces the first tariffs on $34 billion worth of Chinese imports. Should this go ahead as scheduled, China has said it stands prepared to slap equivalent tariffs on some US imports, including agricultural and auto products. However, they have pledged that they will not do so ahead of the scheduled implementation by the US.

Big Trouble in Big China?

EUR consolidates gains

The Euro consolidated the gains made late yesterday in the wake of suspicions that some ECB members were a bit uneasy that some investors were not banking on a rate increase until December next year. They’d prefer investors to consider that a move at the September or October meetings is possible.

EUR/USD Daily Chart

Source: Oanda fxTrade

BOE’s Carney to speak

The data calendar is once again mostly loaded with second-tier data. The highlight could be a speech by BOE Governor Mark Carney at 1000GMT where markets will monitor for any comments on or reference to the more hawkish vote count at the last meeting. Aside from that, German factory orders for May, and the US ISM non-manufacturing numbers may grab the attention. The run-up to tomorrow’s US non-farm payrolls kicks off with the private ADP employment report, which is seen increasing to 190k in June from 178k in May. Late in the session (early Asia tomorrow) sees the release of the FOMC minutes for the June meeting, where the Fed delivered an as-expected 25 bps hike.

For a detailed list of all of today’s economic events, check out our economic calendar at

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