Account
New to ADSS? Open an
account now to get started.
Already have an account?
Add funds to your ADSS account
Account
New to ADSS? Open an
account now to get started.
Add funds to your ADSS account
News
Tuesday, July 15, 2025
What’s happening: The euro fell on Monday with investors growing concerned about US President Donald Trump’s unexpected tariff threat.
What happened: Trump announced plans to impose a 30% tariff on goods from the European Union, sparking speculations of a deeper economic downturn in the bloc.
Strength in the US dollar also weighed on the EUR/USD forex pair.
Why it matters: Last week US President Donald Trump had announced plans to impose a 35% tariff on imports from Canada effective August 1. On Saturday, Trump warned of a 30% tariff on goods imported from the European Union and Mexico, as negotiations failed to reach a trade agreement.
He cited drug trafficking issues in Mexico and persistent trade imbalances with the European Union as reasons for higher tariffs. On Monday, the US administration announced to immediately impose a 17% tariff on imports of tomatoes from Mexico.
Although European Commission President Ursula von der Leyen announced a delay in retaliatory tariffs on US goods, the EU on Monday warned of countermeasures in case no deal is reached to avoid the tariffs.
Meanwhile, Federal Reserve Chairman Jerome Powell warned that inflation would accelerate this summer due to tariffs, which could force the central bank to keep rates unchanged until later this year.
The US dollar received a boost from Trump’s announcement of delivering new weapons to help Ukraine in its ongoing war with Russia and plans of imposing 100% secondary tariffs on Russia in case no peace deal is reached within the next 50 days.
Strength in the US dollar exerted further pressure on the EUR/USD forex pair on Monday. The US dollar index, which measures the greenback’s performance versus a basket of major peers, gained around 0.2% to reach 98.08.
The EUR/USD pair fell to 1.1667 on Monday. The STOXX Europe 600 Index slipped 0.06% to close at 546.99.
What to watch: Investors will continue monitoring tariff-related news from the US, which is expected to impact the EUR/USD pair ahead.
Data on inflation from the US (1630 UAE Time) will also remain in focus. The annual inflation rate in the US, which rose for the first time in four months to 2.4% in May from 2.3% in April, is expected to accelerate further to 2.6% in June.
Investors also await the release of economic data on industrial production (1300 UAE Time) and ZEW economic sentiment index (1300 UAE Time) from the Eurozone. Eurozone’s industrial production, which fell by 2.4% in April, following a 2.4% rise in March, is expected to rise by 0.6% in May. Analysts expect the ZEW Indicator of Economic Sentiment for the Eurozone to improve to 37.8 points in July, from 35.3 in the previous month.
Context: Equity markets in Asia traded mixed this morning as investors assessed the latest economic reports.
Details: Investors continued monitoring tariff-related news from the Trump administration after the US President warned to impose secondary tariffs of 100% on Russia.
Data released this morning showed that China’s economy expanded 5.2% year-over-year in the second quarter, easing from the 5.4% growth recorded in the previous two quarters. This also marked the slowest pace of growth since the third quarter of 2024. However, the latest reading came in slightly above market estimates of 5.1%, following China’s policy support measures.
China’s industrial production grew by 6.8% year-over-year in June, up from the six-month low of 5.8% in May. The figure topped market estimates of 5.6%.
China’s new home prices fell by 3.2% year-over-year in June, lower than the 3.5% decline recorded in the previous month. Although the latest reading signalled contraction for the 24th straight month, the region’s home prices fell at the slowest pace since April 2024.
China’s Shanghai Composite slipped 0.17% to 3,513.57 this morning. Japan’s Nikkei 225 gained 0.41% to close at 39,622.03, while Hong Kong’s Hang Seng Index added 1% to reach 24,445.88.
What to watch: Investors await the release of economic data on Reuters Tankan Index on Wednesday, balance of trade on Thursday and inflation rate on Friday from Japan this week. Japan’s trade deficit, which fell sharply to ¥637.61 billion in May from ¥1,225.17 billion in the year-ago month, is expected to shrink further to ¥353.9 billion in June. Analysts expect Japan’s annual inflation rate to ease further to 3.3% in June, from 3.5% in May.
Other Markets: US trading indices closed higher on Monday, with the Dow Jones index, S&P 500 and Nasdaq 100 up by 0.20%, 0.14% and 0.33%, respectively.
Russia’s Minister of Foreign Affairs Sergey Lavrov held talks with China’s Foreign Minister Wang Yi in Beijing to discuss US relations and prospects for resolving the crisis in Ukraine. The news sent the RUB/USD pair slightly lower in forex trading this morning.
Australia’s Westpac-Melbourne Institute Consumer Sentiment Index rose 0.6% to a four-month high of 93.1 in July. This being an acceleration from the 0.5% rise recorded in the previous month lent support to the AUD/USD forex pair.
UK’s retail sales grew by 2.7% year-over-year in June, versus the 0.6% gain recorded in the previous month. The latest reading topping market estimates of 0.2% sent the GBP/USD pair higher in forex trading this morning.
Argentina’s consumer prices rose 1.6% in June, versus 1.5% in May, which exerted pressure on the ARS/USD forex pair.
Canada’s wholesale sales grew by 0.1% to C$84.2 billion in May, following a 2.3% contraction in April. The latest figure coming in better than the initial reading of a 0.4% decline sent the CAD/USD pair higher in forex trading this morning.
Germany’s ZEW economic sentiment index (1300 UAE Time), ZEW current conditions (1300 UAE Time) and 2-year Schatz auction (1330 UAE Time), UK’s Treasury Stock 2032 auction (1300 UAE Time), South Africa’s gold production (1330 UAE Time) and mining production (1330 UAE Time), Canada’s housing starts (1615 UAE Time), inflation rate (1630 UAE Time), manufacturing sales (1630 UAE Time) and new motor vehicle sales (1630 UAE Time), US NY Empire State manufacturing index (1630 UAE Time) and Redbook index (1655 UAE Time), as well as France’s 12-month BTF auction (1700 UAE Time), 3-month BTF auction (1700 UAE Time) and 6-month BTF auction (1700 UAE Time).
ADSS
8th floor, CI Tower
Corniche Road
PO Box 93894
Abu Dhabi
United Arab Emirates
Trading Services
ts@adss.com
+971 2 657 2414
Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
ADS Securities L.L.C – S.P.C (“ADSS”), a limited liability company – sole proprietorship company incorporated under United Arab Emirates law. Registered under Commercial License No.1190047. ADS Securities L.L.C S.P.C is regulated and authorised in the UAE by the Capital Market Authority (CMA) under Category 1 License No.305027 (Trading Broker, Trading and Clearing Broker, Trading Broker in the International Markets, Trading Broker of OTC Derivatives and Currencies in the Spot Market, Financial Products Dealer) and Category 5 License No.20200000217 (Introduction). Registered Office: 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.
The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.
ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.
