According to PANews, optimism in global markets has surged this week following reports of breakthroughs in trade negotiations between the European Union and the United States. This has led to a significant rise in the U.S. dollar, while the euro and yen have experienced notable declines due to improved U.S. trade positions and capital flows into dollar assets. The non-farm payroll report presented mixed data, causing volatility across various asset classes. In response to risk aversion, bonds and gold have seen an uptick, with gold rising by $40 after the report, erasing previous losses and closing the week at $3,363 per ounce, marking a 0.79% increase.
The implementation of new tariffs has been postponed to August 7, providing countries with additional time to negotiate tariff reductions. Despite two board members voting for a 25-basis-point rate cut, the overall tone of the statement and comments from Fed Chair Powell remain neutral. This suggests that while the Federal Reserve is open to a rate cut in September, it has not ruled out the possibility of a rate hike if tariff increases and a tightening labor market lead to higher inflation.