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10/07/2025 - 07:30 UTCThe US Dollar Index (USDX) traded almost unchanged on Wednesday, yet edged higher during Thursday’s Asian trading hours, nearing the 97.5 level. This movement comes amidst new tariff announcements from the U.S. administration. President Trump unveiled new duties, including a 50% tariff on Brazilian goods and a 30% duty on imports from Algeria, Libya, Iraq, and Sri Lanka, among others, all taking effect in August. A previously announced 50% tariff on copper imports will also begin on August 1. This tariff uncertainty and its potential economic impact could have an impact on the Greenback.
The Federal Reserve's (Fed) June meeting minutes revealed a split among policymakers regarding interest rate cuts. While most participants believed some reduction in the Fed funds rate would be appropriate this year, with tariff-induced price shocks expected to be "temporary or modest," a few officials remained concerned about inflationary pressures from these new import taxes and suggested delaying cuts.
General Asian Markets Most Asian stock markets saw advances on Thursday, largely driven by gains in technology shares, which mirrored the strong performance of Nvidia. However, lingering concerns over U.S. trade tariffs continued to cap overall gains across the region. Regional markets generally took a positive lead from Wall Street, where tech stocks surged. Chinese mainland indices, the China SSE and China SZSE, both rose by around 0.35% as of 06:53 AM GMT on Thursday. Despite these gains, sentiment remained somewhat subdued following Wednesday's mixed inflation data. The Hong Kong 50 index traded 0.8% higher, with gains in tech sectors offsetting losses in other locally listed Chinese stocks. Japanese markets were an outlier, lagging their Asian counterparts on Thursday. The Japan 225 fell by 0.39% and the Japan 100 shed 0.48%. This downturn followed the U.S. imposition of 25% tariffs earlier in the week. Trade talks between Tokyo and Washington also appeared stalled, as Japan continued to push for exemptions from most U.S. tariffs.
In the U.S., the US tech 100 that tracks the NASDAQ Composite reached a record high, boosted by strong performance in technology stocks, particularly Nvidia. However, the broader US 500 futures showed smaller gains, reflecting renewed concerns over U.S. tariff policies. While some relief was found in Trump postponing the general tariff deadline to August 1, investors are now keenly watching for more trade deals with Washington to mitigate the full impact of these tariffs.
In corporate news, NVIDIA made history on Wednesday by briefly surpassing a $4 trillion market valuation, driven by sustained investor enthusiasm for artificial intelligence. Although the stock closed slightly below this milestone, it ended the session up 1.74%. This strong performance follows the company's impressive first-quarter results in May, where CEO Jensen Huang highlighted four key drivers of demand: rising "reasoning AI" capabilities, the rollback of international AI export restrictions, growing enterprise AI adoption, and increased demand for industrial AI due to global manufacturing reshoring.
On the cryptos front Bitcoin reached a new all-time high above $112,000 on Wednesday, driven by increased institutional investment. Companies like MicroStrategy and GameStop are actively adding Bitcoin to their treasuries, while Trump Media recently filed for a "Crypto Blue Chip ETF." These factors, including ETF inflows and supportive U.S. policy, are boosting Bitcoin's appeal as an institutional-grade asset.
Later today, traders will closely monitor the release of U.S. weekly Initial Jobless Claims data, expected at 12:30 PM GMT (Greenwich Mean Time). A stronger-than-expected report could help limit the USD's losses. Additionally, remarks from several Fed officials, including Alberto Musalem, Christopher Waller, and Mary Daly, are anticipated for further insights into the central bank's policy outlook.
The Euro steadied near 1.1715 against the US Dollar on Thursday morning in the Asian session, recovering after three consecutive daily declines and adding a mere 0.12% on Wednesday. This modest gain followed the release of the Federal Open Market Committee (FOMC) minutes, which revealed a largely dovish tone from the Federal Reserve, helping to offset renewed global tariff tensions.
The Federal Reserve's June meeting minutes indicated that most policymakers foresee at least one interest rate cut as appropriate later this year. Furthermore, a few officials expressed a willingness to consider a reduction as early as July, provided that incoming economic data supports such a move. This softening stance from the Fed appears to be a key factor in the Euro's recent stability.
However, Washington has intensified its tariff offensive, sending new demand letters with duties ranging from 20% to 50% to several countries, including the Philippines, Moldova, Algeria, Iraq, Libya, Brunei, Sri Lanka, and Brazil. This ongoing trade uncertainty continues to be a significant consideration for market participants.
Bitcoin marked a historic milestone on Wednesday, surging to a new all-time high above $112,000. This achievement is largely attributed to increasing institutional investor participation, with firms aggressively adding Bitcoin to their treasury portfolios and major asset managers launching Bitcoin ETFs.
Companies like MicroStrategy (MSTR) continue to be prominent accumulators of Bitcoin, and new entrants such as GameStop Corp (GME) have also begun board-approved Bitcoin purchases. Further bolstering the institutional embrace, Trump Media (DJT) recently filed with the U.S. Securities and Exchange Commission for approval to launch a new "Crypto Blue Chip ETF" later this year, building on previous ETF filings.
These significant structural tailwinds—including robust ETF inflows, the expansion of corporate Bitcoin treasuries, and supportive U.S. policy—are collectively enhancing Bitcoin's appeal and solidifying its status as a legitimate institutional-grade asset.
On Wednesday, crude oil prices, represented by WTI and Brent, showed moderate gains, indicating some price stabilization. Investors continued to assess the potential impact of escalating U.S. tariffs on global economic growth. However, a weaker dollar and signs of robust U.S. gasoline demand offered some support to prices.
Despite some positive demand indicators like record global daily flights in early July, analysts note that broader macro uncertainty, especially related to the U.S. tariff policies, has led to a more cautious buying environment in Asia. The U.S. administration has recently expanded its tariff threats, including a punitive 50% tariff on Brazilian exports and plans for levies on copper, semiconductors, and pharmaceuticals, sending tariff notices to numerous countries. These measures are raising concerns among policymakers about inflationary pressures, influencing demand for the energy sector.
Supporting oil prices was a weaker U.S. dollar, making oil cheaper for international buyers, and data from the U.S. Energy Information Administration (EIA) showing a rise in U.S. crude stocks but a decline in gasoline and distillate inventories last week, with gasoline demand notably increasing by 6%. On the supply side, while OPEC+ is expected to approve another significant output boost for September, doubts remain about whether actual production will fully meet these targets, as some members already exceed quotas or face infrastructure limitations.
On Wednesday, the US 500 advanced by 0.53% on the iFOREX platform, reflecting a strong session on Wall Street. This rise was significantly propelled by tech sector strength, particularly NVIDIA's landmark achievement.
NVIDIA (NVDA) was a standout performer, briefly becoming the first company in history to surpass a $4 trillion market valuation. The chipmaker saw its shares rise 1.74% on Wednesday and another 0.3% in aftermarket trading, continuing its dramatic rally fueled by sustained investor enthusiasm for artificial intelligence. Gains in NVIDIA and other tech stocks also helped push the US tech 100 that tracks the performance of the NASDAQ Composite to a record high.
Despite the positive market close, concerns over U.S. trade tariffs persisted. President Trump continued his aggressive tariff agenda, imposing a 50% duty on Brazil, which drew a vow of retaliation, and also enacted a 50% levy on copper imports. These tariff developments kept some downward pressure on futures markets.
Wall Street also received a boost from speculation about Federal Reserve interest rate cuts. Minutes from the Fed's June meeting showed a majority of policymakers favoring further rate cuts this year, though the exact timing remains uncertain given the resilient U.S. economy and inflationary concerns related to Trump's tariffs.
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