This article has been translated from English to Gen Z Slang.
Yo fam, early in the day, asset classes were like, "Where we goin'?" Then boom! The US-Japan trade squad came through, making stocks and oil wild out. 🚀
Gold? Nah, it was catchin' Ls all day as traders ditched their safety nets, feelin' the good vibes from global trade talks. ✌️
Here’s the tea you might’ve missed in the last trading sessions! 👀
Headlines:
- U.S. and Japan squad up with a trade deal, with Japanese bonds and the Nikkei poppin' off
- Australia Westpac Leading Index for June 2025: 0.0% m/m (0.2% m/m forecast; -0.1% m/m previous)
- BOJ Governor Uchida said the U.S.-Japan deal is major progress and chills out policy drama
- Rumors on the street that Japanese PM Ishiba's thinkin' 'bout bouncin' after takin' an L in the election
- Japanese Finance Minister Kabo is like, "Yo, forex levels are off limits in U.S. trade convos, fam."
- Japanese Prime Minister Ishiba squashed those leave-the-office rumors
- U.S. MBA Mortgage Applications for July 18, 2025: 0.8% (-10.0% previous)
- European Commission President von der Leyen is teamin' up with Japan to clap back at unfair trade game
- U.S. Treasury Secretary Bessent says things with the EU are chillin' and Trump ain’t firing Powell. Whew!
- U.S. Commerce Secretary Lutnick thinks the Japan trade vibe could be the blue-check for EU tariffs
- Canada New Housing Price Index for June 2025: -0.2% m/m (0.1% m/m forecast; -0.2% m/m previous)
- Euro area Consumer Confidence Flash for July 2025: -14.7 (-15.0 forecast; -15.3 previous)
- U.S. Existing Home Sales for June 2025: -2.7% m/m (-0.7% m/m forecast; 0.8% m/m previous); Existing Home Sales for June 2025: 3.93M (4.0M forecast; 4.03M previous)
- U.S. EIA Crude Oil Stocks Change for July 18, 2025: -3.17M (-3.86M previous)
Broad Market Price Action:
Dollar Index, Gold, S&P 500, Oil, U.S. 10-yr Yield, Bitcoin Overlay Chart by TradingView
Asian session traders woke up to the U.S. and Japan dropping the trade tea, sending crude oil and stocks skyward. But get this, oil couldn’t keep the hype up during the London session until a shock EIA report showed stockpiles dipped. 😲
Gold? It kept shedding its "safe-bet" swag as peeps swapped into high-yield gang. The drop got steeper in U.S. markets, 'cause the White House is hyped about the U.S.-Japan deal potentially being the vibe check for other trade pacts like with the EU. 💪
European stocks were feelin' themselves, with market peeps dreamin' of a U.S.-EU hookup. Treasury Secretary Bessent’s like, "EU talks are lowkey fire," and Lutnick said the Japan deal could be the blueprint for EU plans. 💼
U.S. stocks were dancing too—S&P 500 went up 0.78%, and Nasdaq got a 0.61% boost from Tesla and Alphabet's lit earnings; overall vibes were top-tier. 🚀
FX Market Behavior: U.S. Dollar vs. Majors:
Overlay of USD vs. Majors Chart by TradingView
Early buzz was about the Japan-U.S. deal boostin' the dollar, mostly flexin' on European currencies. But USD/JPY was wildin’ too, 'cause news hit that PM Ishiba might bail after electoral Ls. 🤯
Later, Ishiba said, "Nah fam," to those resignation deets, letting Asian traders keep an eye on the good trade vibes, staying cautiously lit ahead of the August 1 tariffs deadline. 🤞
Commodity currencies were climbing like climbers in a TikTok trend, flexing against the dollar while London traders kept vibes hopeful for a U.S.-EU trade deal. 🛍️
But when U.S. session kicked in, and those weak home sale stats dropped, USD kinda flopped, letting AUD and NZD cash in on the moment. 🔥
Upcoming Potential Catalysts on the Economic Calendar
- Germany GfK Consumer Confidence at 6:00 am GMT
- France HCOB Manufacturing & Services PMI Flash at 7:15 am GMT
- Germany HCOB Manufacturing & Services PMI Flash at 7:30 am GMT
- Euro area HCOB Manufacturing & Services PMI Flash at 8:00 am GMT
- U.K. S&P Global Manufacturing & Services PMI Flash at 8:30 am GMT
- U.K. CBI Business Optimism Index at 10:00 am GMT
- U.K. CBI Industrial Trends Orders at 10:00 am GMT
- Euro area ECB Interest Rate Decision at 12:15 pm GMT
- Canada Retail Sales at 12:30 pm GMT
- Canada Manufacturing Sales at 12:30 pm GMT
- Canada New Housing Price Index at 12:30 pm GMT
- U.S. Chicago Fed National Activity Index at 12:30 pm GMT
- U.S. Initial Jobless Claims at 12:30 pm GMT
- Euro area ECB Press Conference at 12:45 pm GMT
- New Zealand RBNZ Conway Speech at 1:30 pm GMT
- U.S. S&P Global Manufacturing & Services PMI Flash at 1:45 pm GMT
- U.S. New Home Sales at 2:00 pm GMT
- U.S. Kansas Fed Manufacturing Index at 3:00 pm GMT
- U.S. Fed Balance Sheet at 8:30 pm GMT
Markets are about to pop off 'cause the economic calendar is loaded with global flash PMI drops, and don’t even get me started on the ECB policy deets droppin' like a new track!
Make sure you’re tuned in for ECB boss Lagarde’s chat post-announcement, 'cause euro traders are on the edge to see what their next move is gonna be. 🤔
Apart from that, keep an eye on U.S. initial jobless claims and Canada’s retail sales announcements—these could make waves for USD and CAD in the NY session! 🌊
Stay chill, be savvy, and peep our Forex Correlation Calculator before jumping in on any trades! 😉
