INDIA: Finance Ministry Says Secondary Impact of US Tariffs Pose Challenges

No clear, fresh fundamental driver for the latest extension higher in the USD, with gold lower and S&P 500 e-minis closing the Asia-Pac opening gap higher. Meanwhile, benchmark European equity indices remain under pressure.

• U.S. President Trump has reiterated his ability to implement tariffs, earmarking a 15-20% “world tariff” range (in line with levels levied in recent negotiations), while shortening the deadline for Russia to agree a ceasefire truce with Ukraine (to 10-12 days from now).
• Elsewhere, there hasn’t been much in the way of negatives surrounding the Sino-U.S. trade meeting in Stockholm, although that only got underway this afternoon.
• On net, it looks like the watering down of some of the recent headwinds for the USD, along with Trump’s softening tone when it comes to the immediate future of Fed Chair Powell, is allowing some of the USD negativity unwind.
• Still, the broader USD (BBDXY) only trades back to levels that were registered last Monday.
• EUR/USD remains under the most pressure despite the U.S.-EU trade agreement, with the deal still deemed punitive enough to harm to EU, despite the avoidance of the worst-case scenario.
• EUR/USD registers lows of 1.1626, still some way above next support at the 50-day EMA (1.1559). a break there would pose a bigger threat to the bullish case in the pair. 

No clear, fresh fundamental driver for the latest extension higher in the USD, with gold lower and S&P 500 e-minis closing the Asia-Pac opening gap higher. Meanwhile, benchmark European equity indices remain under pressure.

• U.S. President Trump has reiterated his ability to implement tariffs, earmarking a 15-20% “world tariff” range (in line with levels levied in recent negotiations), while shortening the deadline for Russia to agree a ceasefire truce with Ukraine (to 10-12 days from now).
• Elsewhere, there hasn’t been much in the way of negatives surrounding the Sino-U.S. trade meeting in Stockholm, although that only got underway this afternoon.
• On net, it looks like the watering down of some of the recent headwinds for the USD, along with Trump’s softening tone when it comes to the immediate future of Fed Chair Powell, is allowing some of the USD negativity unwind.
• Still, the broader USD (BBDXY) only trades back to levels that were registered last Monday.
• EUR/USD remains under the most pressure despite the U.S.-EU trade agreement, with the deal still deemed punitive enough to harm to EU, despite the avoidance of the worst-case scenario.
• EUR/USD registers lows of 1.1626, still some way above next support at the 50-day EMA (1.1559). a break there would pose a bigger threat to the bullish case in the pair. 

• -5,000 TYU5 111 straddles, 118 appr iv 5.47% (exp 8/22)