🇺🇸 U.S. Dollar:
1. U.S. second-quarter economic growth at 3%, exceeding expectations, Trump again urges the Federal Reserve to cut interest rates.
2. Wells Fargo: raises its 2025 U.S. GDP growth forecast from 1% to 1.3%.
3. U.S. June existing home sales drop to a nine-month low.
4. White House National Economic Council Director Hassett: expects third-quarter economic growth of 4%. The White House fully respects the independence of the Federal Reserve.
5. U.S. Treasury Secretary Basent: hopes to see the Federal Reserve 'exercise a bit of imagination'. Reiterates that the Federal Reserve made a mistake on the inflation issue related to tariffs.
6. White House officials: Trump will sign an executive order on July 31 to impose higher tariff rates on multiple countries that fail to reach a trade agreement by the August 1 deadline.
7. Federal Reserve - keeps interest rates unchanged at 4.25%-4.50%, Governors Waller and Bowman cast dissenting votes and advocate for a rate cut. Powell avoids giving guidance on a September rate cut, stating that the current monetary policy stance is in a favorable position, emphasizes reliance on data, and that the inflation target is far from employment, reasonable speculation is that the impact of tariffs on inflation is temporary.
🌍 Major Non-U.S. Currencies:
1. German Cabinet approves the 2026 budget, which includes record investments.
2. South Korea's Ministry of Strategy and Finance: South Korea will cancel the previous tax reduction policy for stock investments.
3. Hong Kong Monetary Authority buys 3.925 billion HKD in the market due to the Hong Kong dollar exchange rate hitting the weak-side convertibility guarantee.
4. The Bank of Canada keeps interest rates unchanged, stating that the risks of the trade war have decreased. The possibility of a rate cut in September has dropped to 19%.
5. South Korean minister: The $200 billion package deal reached with the U.S. is similar to Japan's $550 billion plan.
6. The Bank of Japan maintains its interest rate at 0.5% for the fourth consecutive meeting and raises its inflation forecast, Governor Ueda Kazuo downplays inflation risks.
