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 a slight improvement in U.S. unemployment claims, but the primary focus was on the escalating trade tariffs imposed by former President Donald Trump.
Key Economic Data
The macroeconomic calendar was relatively light, with the most significant data point being the U.S. unemployment claims, which reported at 227,000, slightly better than the expected figures. However, the UK GDP data surprised negatively, showing a contraction of -0.1% against an expected growth of +0.1%. This unexpected decline led to a sharp drop in the British pound.
Market Reactions
In response to the UK GDP data, European equity indices opened lower, reversing some of the gains made earlier in the week. Traders were particularly cautious ahead of Trump's anticipated announcement regarding further tariffs, which were expected to target Canada at 35% and potentially the entire European Union.
Currency and Commodity Movements
On the currency front, the Australian dollar showed strength, while both the Japanese yen and the euro faced downward pressure. In the commodities market, 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 space, Bitcoin managed to hold above $118,000 following a significant breakout, maintaining a bullish momentum as the weekend approached.