Recent employment data from the Federal Reserve confirmed that a rate cut would not occur in July. Meanwhile, uncertainties surrounding trade tariffs begin to dissipate, although the news is not promising for the cryptocurrency market.
US Unveils Tariff Plans
In April, President Trump announced shocking tariff rates, including a 46% tariff on Vietnam and 24% on Japan. Currently, Vietnam, after securing a trade agreement, has reduced its rate to 20%. Conversely, Japan, having failed to reach an agreement, faces a 25% tariff on all products starting August 1.
The Vietnam agreement last week was seen as hopeful. However, the tariffs announced on July 7 signal sustained high rates, causing declines in the stock market as pressures from the tariffs mount, especially after markets fell from their all-time highs.
The Future of Cryptocurrencies
The European Union has yet to finalize its stance. EU sources suggest negotiations are ongoing, and a preliminary agreement might be reached this week. However, official announcements are necessary for clarity beyond unnamed sources.
This week, decisions on rates for all countries are expected. Consequently, the Federal Reserve will have sufficient data to evaluate the effect of tariffs on inflation, paving the way for more realistic roadmaps for potential rate cuts and providing markets with a clearer outlook.
Conclusion
The situation isn’t great at the moment. Nevertheless, while sustained high rates are slightly lower than in April for some countries, they generally remain similar. The outcome of EU discussions will be crucial, given the trade volume between the two regions.
The cryptocurrency market remains under pressure, and the upcoming steps from countries, particularly within the EU, will be critical for assessing future trends.
