Overview
On July 11, 2025, the financial markets experienced notable movements influenced by trade tensions and disappointing economic data from the UK. The day began with traders reacting to recent developments in U.S. trade policy, particularly tariffs imposed by former President Donald Trump.
Key Economic Data
The macroeconomic calendar was relatively light, with the most significant data point being U.S. unemployment claims, which were reported at 227,000, slightly better than the expected figures. However, the focus quickly shifted to trade tensions as Trump announced a 50% tariff on Brazil, with indications that further tariffs could be imposed on Canada (35%) and potentially the entire European Union.
UK GDP Report
Adding to the market's volatility, the UK reported a GDP contraction of -0.1%, contrasting with the +0.1% growth that analysts had anticipated. This unexpected decline led to a sharp drop in the British pound, reflecting traders' concerns over the UK’s economic outlook.
Market Reactions
In the equities market, European indices opened lower, reversing some of the gains made earlier in the week as traders braced for Trump's official tariff statement expected later in the day. U.S. futures remained flat, indicating a wait-and-see approach among investors.
Currency and Commodity Movements
On the currency front, the Australian dollar showed strength, while the Japanese yen and euro faced downward pressure. In commodities, silver continued its upward trend, copper maintained its gains, and oil prices were testing a critical trendline, with concerns of a potential bearish breakdown.
Cryptocurrency Update
In the cryptocurrency market, Bitcoin managed to hold above $118,000 following a significant breakout, maintaining bullish momentum as the weekend approached.