Author: Fiona Craig

Gold prices gained ground on Tuesday, recovering slightly from near three-week lows as easing global trade tensions tempered demand for the safe-haven metal ahead of a pivotal U.S. Federal Reserve policy announcement.

By 04:50 ET (08:50 GMT), spot gold rose 0.4% to $3,327.10 per ounce, while gold futures increased by the same margin to $3,381.00 per ounce.

US-EU trade deal dims gold’s appeal

After four straight sessions of decline, gold prices have been pressured by recent progress in U.S. trade relations, which has reduced immediate demand for haven assets.

The weekend agreement on a trade framework between the U.S. and the European Union eased tensions between two of the world’s largest economies, dampening the short-term need for gold as a safe store of value.

The U.S. Dollar Index surged more than 1% on Monday and continues to trade positively, making dollar-denominated commodities like gold costlier for international buyers.

Still, despite recent softness, gold is expected to hold above $3,000 per ounce as ongoing uncertainty sustains safe-haven interest, according to a Reuters poll of analysts.

The survey of 40 experts produced a median forecast of $3,220 per troy ounce for 2025, up from $3,065 three months earlier. The 2026 projection increased to $3,400 from $3,000.

While trade uncertainties and fiscal risks have kept gold attractive, most analysts point to central banks as the key driver of the metal’s rally, due to their long-term strategy of diversifying reserves away from U.S. dollar dominance.

Fed meeting in focus

Investors are now turning their attention to the U.S. Federal Reserve’s two-day policy meeting, concluding Wednesday, where interest rates are widely expected to remain steady. Market participants will closely analyze any hints regarding future monetary policy.

This cautious stance ahead of the meeting has kept gold prices relatively range-bound, with traders hesitant to make significant moves.

Upcoming U.S. economic releases, including second-quarter GDP, PCE inflation data, and monthly employment figures, are also on investors’ radar this week.

Other metals

Platinum futures dipped 0.1% to $1,418.15 per ounce, while silver futures inched up 0.4% to $38.38 per ounce.

On the copper front, London Metal Exchange benchmark prices slipped 0.1% to $9,782.45 per ton, with U.S. copper futures falling 0.2% to $5.60 per pound.

Copper prices in the U.S. dropped nearly 3% on Monday after Chile’s finance minister announced plans to seek an exemption from upcoming U.S. tariffs on the metal.

“The copper market is awaiting more details on planned copper tariffs, which are set to begin on 1 August,” ING analysts noted.

“Traders have been shipping record volumes of copper to the U.S. to front-run the tariffs. This has caused a record price gap between U.S. copper prices and the benchmark LME prices,” they added.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Inchcape PLC (LSE:INCH) saw its shares fall 8.5% during Tuesday’s London session after the British automotive distributor reported a drop in first-half revenues, driven largely by reduced demand for premium vehicles in the Asia-Pacific region amid ongoing U.S. trade tensions.

The company experienced a 15% decline in organic revenue in the Asia-Pacific market at constant currency, a significant setback considering the region accounts for over 25% of Inchcape’s overall sales.

CEO Duncan Tait told Reuters that markets such as Indonesia, the Philippines, and Hong Kong faced the steepest declines. He highlighted that premium vehicle volumes fell 40% in Indonesia and 15% in the Philippines compared with the same period last year.

For the six months ending June 30, Inchcape posted an adjusted operating profit of £247 million ($329 million), marking a 12% decrease at constant currency from the previous year. Profit before tax (PBT) edged down 4% to £200 million.

Total revenue declined 4% to £4.32 billion, with organic sales slipping 3%.

The company announced a 16% reduction in its interim dividend to 9.5p per share.

Jefferies analyst James Wheatcroft noted in a research note, “We expect a -2% decline in consensus PBT estimates for full-year 2025 (FY25) to update for ongoing FX headwinds.”

While Inchcape acknowledged some logistical challenges linked to U.S. tariffs imposed under President Donald Trump, it stated these disruptions have not had a direct material effect on its operations.

Despite these difficulties, the company upheld its full-year outlook, projecting earnings per share growth.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Bank of Ireland Group PLC (LSE:BIRG) reported a first-half pre-tax profit of €721 million on Tuesday, with a return on tangible equity (ROTE) of 14.8%, as increased impairment charges weighed on strong growth within its Irish operations.

Following the announcement, the bank’s shares dropped 5.8%, largely due to impairment charges coming in above analyst expectations.

Net interest income (NII) for the first half of 2025 stood at €1.67 billion, down from €1.80 billion during the same period last year, but surpassing the bank’s internal forecasts.

This solid performance led Bank of Ireland to raise its full-year NII guidance to roughly €3.3 billion, up from the prior estimate of more than €3.25 billion.

On the other hand, impairment charges climbed to €137 million (33 basis points), representing a 21% increase over consensus predictions. As a result, the bank revised its full-year impairment charge forecast to about 30 basis points, up from the earlier guidance of “low to mid-20s basis points.”

“The Group had a good H1 performance, with a profit before tax of €0.7 billion and is on track to deliver its full year targets,” said Myles O’Grady, Bank of Ireland Group CEO.

“Against an uncertain international backdrop, the Irish economy is resilient. Bank of Ireland is well positioned to navigate this environment, generating strong levels of capital to support customers, grow our balance sheet, invest in the business and deliver attractive shareholder returns.”

The bank declared an interim dividend of 25 cents per share, corresponding to a 40% payout ratio. Business income rose 4% year-over-year to €399 million, boosted by an 8% increase in its Wealth and Insurance divisions.

Operating expenses were up 3% compared to last year, consistent with guidance, leading to a cost-to-income ratio of 48%.

At the end of June, Bank of Ireland’s loan portfolio totaled €82.2 billion, slightly lower than €82.5 billion in December 2024. However, the Irish loan book grew by €1.3 billion, driven primarily by mortgages where the bank held a 40% market share of new lending. Customer deposits increased by €1.9 billion since December, reaching €105.0 billion.

The bank reaffirmed its 2025 full-year guidance for an adjusted ROTE of approximately 15% and organic capital generation between 250 and 270 basis points. It also maintained a positive medium-term outlook, anticipating ROTE to surpass 17% by 2027.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Shares of FirstGroup PLC (LSE:FGP) climbed 1% following the UK’s Office of Road and Rail (ORR) granting approval for extensions to its Hull Trains and Lumo open access rail services, effective from December 2025.

The green light from regulators allows Lumo to extend certain daily routes to Glasgow Queen Street, boosting capacity by roughly 19 million seat miles and including stops at Falkirk High and Edinburgh Haymarket. Additionally, FirstGroup plans to introduce an extra daily Lumo service running between Newcastle and London, adding 76 million seat miles, alongside an increased Hull Trains service on weekdays and Saturdays between London and Hull, contributing an extra 23 million seat miles.

Altogether, these expansions will increase FirstGroup’s open access capacity by about 118 million seat miles, on top of its current 967 million seat miles. When combined with previously approved new routes to Stirling and Carmarthen, this will more than double the company’s existing open access network.

On the other hand, the ORR declined FirstGroup’s request to launch a new Hull Trains service between London and Sheffield, which would have added an estimated 92 million seat miles. FirstGroup confirmed it remains open to exploring future possibilities for this route.

“Although the rejection of the service of the new route between London and Sheffield is disappointing, we did not expect all applications to increase capacity to be approved, particularly following the WCML rejections. There are further open access applications to play for,” noted RBC analysts in response to the decision.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

ConvaTec Group PLC (LSE:CTEC) reported solid financial results for the first half of 2025 on Tuesday, highlighting consistent revenue growth and improving profit margins. The upbeat figures pushed the company’s shares 0.7% higher in early trading.

For the six months ending June 30, the medical products and technology firm generated $1.18 billion in revenue, up 6.0% year-on-year, in line with market expectations. Organic revenue growth—excluding contributions from InnovaMatrix—was even stronger at 6.8%, with all business units delivering positive momentum.

Adjusted operating profit rose 13.1% to $252 million, while the company expanded its adjusted operating margin by 130 basis points to reach 21.3%. Adjusted earnings per share climbed 18.7% to 8.0 cents, slightly ahead of analysts’ projections.

The Infusion Care segment led the way, posting 14.1% organic growth. In response, ConvaTec upgraded its full-year outlook for this business unit, now expecting double-digit growth, up from the earlier forecast of high single digits.

Elsewhere, Continence Care revenues grew by 6.7%, Ostomy Care increased 4.7%, and Advanced Wound Care (excluding InnovaMatrix) saw a 4.3% rise.

“Convatec performed strongly in the first half and we are on track to deliver FY25 financial guidance,” said CEO Karim Bitar. “Under our FISBE strategy, we saw further broad-based organic revenue growth across all chronic care categories, further operating margin expansion and double-digit growth in adjusted EPS.”

The company reiterated its full-year 2025 guidance, targeting organic revenue growth between 5.5% and 7.0%, excluding InnovaMatrix. Revenue from InnovaMatrix is projected to reach at least $75 million this year.

Despite currency headwinds and anticipated tariff-related impacts shaving about 50 basis points from margins, ConvaTec is holding its adjusted operating margin forecast steady at 22.0% to 22.5%.

Looking ahead, the company remains confident in its medium-term goals, aiming for 5–7% organic revenue growth and adjusted operating margins in the mid-20s by 2026 or 2027.

The board declared an interim dividend of 1.877 cents per share, up 3.0% from last year.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

SSP Group (LSE:SSPG) reported on Tuesday that third-quarter sales came in below expectations, citing underperformance in key regions such as the UK and Asia Pacific. Despite the slowdown, the company confirmed its guidance for the full year remains unchanged.

The travel-focused food and beverage operator recorded a 6% year-on-year increase in constant currency sales for Q3, slightly missing analyst forecasts of 7%. Like-for-like sales rose 3%, just under the 3.5% projected, while contract wins and acquisitions contributed an additional 5% to top-line growth.

Performance was weighed down by a 2% drag from the group’s exit from Germany’s motorway services and the deconsolidation of its Indian joint venture, AAHL. Like-for-like sales momentum weakened notably in the final seven weeks of the quarter, growing just 1% compared to 5% in the earlier part of Q3. However, trading improved again in early Q4, with like-for-like sales rising 3% over the first three weeks.

Regionally, results were mixed. The UK and Ireland, Asia Pacific, and the Eastern Europe/Middle East cluster underperformed. In the UK, issues at Marks & Spencer caused by a cyberattack disrupted performance, though sales have since rebounded. In Asia Pacific, increased geopolitical risk and air travel safety concerns weighed on demand toward the end of the quarter.

Continental Europe faced pressure from reduced consumer spending, which especially hit rail traffic, while North America saw slightly fewer passengers than the prior year but delivered a better-than-expected performance.

Despite these headwinds, management reaffirmed full-year constant currency guidance, attributing the steady outlook to cost-saving initiatives and improved early Q4 trading.

SSP continues to forecast full-year revenue between £3.7 billion and £3.8 billion, with pre-IFRS 16 operating profit expected to range between £230 million and £260 million. Pre-IFRS 16 earnings per share are projected at 11.5 to 13.5 pence.

At current exchange rates, currency effects are expected to reduce revenue by approximately 1.8% and cut operating profit by 4.4%.

SSP remains a key global player in travel-related food and beverage concessions. Analysts at RBC noted that while short-term challenges persist in the travel sector, the company’s strong expansion pipeline—particularly in the U.S.—is expected to support future growth. Margin recovery in Europe and rising free cash flow should follow as the firm completes its post-pandemic maintenance backlog and continues to open new units.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Essentra PLC (LSE:ESNT) announced its financial results for the first half of 2025 on Tuesday, aligning closely with internal expectations. The company posted an adjusted EBITA of £16.5 million, slightly above the £15.7 million projected by analysts.

Despite a 1.1% dip in revenue growth at constant exchange rates, Essentra reaffirmed its full-year outlook. Total revenue for the first half stood at £152.4 million, while the operating margin dropped by 290 basis points year-over-year to 10.8%.

Regional performance was mixed. The EMEA region saw a 4.5% like-for-like revenue decline, whereas the Americas returned to growth, posting a 0.7% increase. APAC outperformed, with like-for-like revenue climbing 9.5%, bolstered by strong export activity from China to other Asian markets.

Gross margins slid to 43.6%, down from 46.4% a year ago. The company cited weaker volumes, geographic sales shifts, and inflation in Turkey as contributing factors. However, second-quarter margins improved to 45.7%, indicating early benefits from operational adjustments.

Essentra expects margin improvement to continue in the second half, supported by efficiency initiatives such as facility consolidations and pricing actions launched earlier in the year. If sales volumes remain consistent with the second quarter, these efforts are projected to lift margins and drive a modest increase in revenue.

Free cash flow reached £9.0 million during the period. Net debt totaled £68.7 million, with gearing at 1.5 times EBITDA. In line with its policy to maintain a full-year dividend cover around three times adjusted earnings, the interim dividend was cut by 36% to 0.8p.

The company also reported a year-over-year increase in new order intake across all regions. Management continues to evaluate opportunities for strategic bolt-on acquisitions.

Progress on the rollout of Essentra’s enterprise resource planning (ERP) system remains on track. The associated £10 million annual cash impact is expected to lessen starting in 2026.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

European equities advanced modestly on Tuesday, as investors continued to assess the impact of a new trade agreement between the United States and the European Union. The uptick in stocks also comes amid a fresh batch of corporate earnings and ahead of the Federal Reserve’s closely watched two-day policy meeting.

As of 07:05 GMT, Germany’s DAX gained 0.5%, France’s CAC 40 rose 0.2%, and London’s FTSE 100 added 0.1%.

Transatlantic Trade Deal Lifts Sentiment, but Concerns Linger

The trade agreement revealed over the weekend between Washington and Brussels brought some clarity to companies on both sides of the Atlantic, helping lift investor sentiment. While the reduction in trade uncertainty gave stocks a boost, the market’s response was measured.

Market analysts noted that the structure of the agreement appeared to favor U.S. interests, potentially dampening economic prospects for Europe.

The deal, which involves a 15% tariff on most European imports into the U.S. starting next month, was sharply criticized by French Prime Minister Francois Bayrou.

“It is a dark day when an alliance of free peoples, brought together to affirm their common values and to defend their common interests, resigns itself to submission,” Bayrou posted on X.

German Chancellor Friedrich Merz also expressed concern, warning the tariffs would cause “significant” harm to Germany’s economy.

Together, the U.S. and EU account for nearly one-third of global trade, making the agreement highly consequential for global markets.

Mixed Signals from European Corporates

On the earnings front, Stellantis (BIT:STLAM) provided an upbeat outlook for the remainder of the year. The automaker forecasted a return to revenue growth and stable low single-digit operating margins in the second half, marking a possible recovery from a challenging start to 2025. Stellantis also predicted stronger industrial free cash flow in the second half, after recording a cash burn of €3 billion ($3.48 billion) in the first six months.

Barclays (LSE:BARC) reported a stronger-than-expected 23% increase in first-half profits, driven in large part by gains in its markets division. The British bank saw a surge in trading activity following the announcement of U.S. trade tariffs.

AstraZeneca (LSE:AZN) surpassed second-quarter earnings expectations, thanks to robust sales of treatments for cancer, cardiovascular, and kidney conditions. However, the pharmaceutical giant maintained its full-year forecast due to ongoing pricing pressures and uncertainty over international trade flows.

In the healthcare sector, Philips (NYSE:PHG) posted a 47% decline in second-quarter net profit. The drop was attributed to the absence of a one-time insurance gain from the prior year. Despite the decline, the Dutch firm reported improvements in underlying metrics such as operating margin and free cash flow.

Construction chemicals maker Sika (TG:SIKA) managed to grow its profit margins in the first half of the year, even as reported revenues slipped due to currency headwinds.

Meanwhile, Air Liquide (EU:AI) announced higher first-half earnings and a stronger operating margin. The French industrial gas supplier credited cost discipline and solid investment in areas like energy transition and electronics for the performance.

Investors Turn Focus to Fed Policy Meeting

Attention now shifts to the Federal Reserve, which begins its two-day policy gathering later Tuesday. While most economists expect interest rates to remain steady, debate among Fed officials is likely to intensify over the potential for rate cuts in the near term.

Former President Donald Trump reignited that discussion on Monday by publicly urging the Fed to lower rates, arguing that such a move would benefit the American economy.

Oil Prices Steady Following Previous Session Gains

In the commodities market, crude oil prices hovered around unchanged levels in early European trading, stabilizing after strong gains the day before.

At 03:05 ET, Brent crude held steady at $69.32 per barrel, while U.S. West Texas Intermediate also remained flat at $66.71 per barrel.

The prior session saw both benchmarks rise by more than 2%, with Brent reaching its highest point since July 18. The gains followed news of the U.S.-EU trade deal, which helped ease fears of a broader trade conflict that could have dampened demand for oil.

A key component of the agreement includes a planned $750 billion worth of EU purchases of American energy supplies over the coming years.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

U.S. stock futures nudged upward early Tuesday as traders braced for a packed week filled with major earnings reports, pivotal economic data, and a closely watched interest rate decision from the Federal Reserve. At the same time, renewed trade discussions between the U.S. and China in Sweden stirred cautious optimism that a temporary truce might be extended.

In a sign of robust demand from China, Nvidia has reportedly placed a fresh order for 300,000 H20 AI chips with Taiwan Semiconductor Manufacturing Co (TSMC), underscoring the region’s surging appetite for artificial intelligence hardware.

Modest Gains in U.S. Futures

Futures contracts tied to major U.S. indexes signaled a slightly positive open. As of 03:35 ET, Dow Jones Industrial Average futures ticked up by 27 points (0.1%), S&P 500 futures added 8 points (0.1%), and Nasdaq 100 futures rose 62 points (0.3%).

The S&P 500 closed Monday at another all-time high, buoyed by momentum from the weekend’s U.S.-EU trade deal. That agreement is part of a series of deals the Biden administration aims to finalize ahead of August 1, when increased “reciprocal” tariffs are expected to take effect.

Commenting on the deal, analysts at Vital Knowledge noted that the 15% tariff imposed on EU imports was widely anticipated: “that’s exactly what [markets] got.”

Beyond trade developments, investors are keeping a close eye on earnings surprises and the looming Fed announcement, especially with key inflation figures still to come.

Among early movers, Nike shares rallied after JPMorgan Chase upgraded the stock from “neutral” to “overweight.”

U.S.-China Trade Talks Continue in Sweden

Negotiators from Washington and Beijing are meeting again in Stockholm to explore the possibility of extending a fragile tariff ceasefire. Chinese Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent were both seen attending discussions at the Swedish Prime Minister’s office, according to Reuters.

So far, no official statements have been made, but reports suggest that talks may pave the way for a 90-day extension of the current trade truce. U.S. Trade Representative Jamieson Greer downplayed expectations, noting that an “enormous breakthrough” was unlikely.

However, a potential extension could open the door to another summit between President Trump and Chinese leader Xi Jinping.

Earnings Season Ramps Up

This week marks a critical point in the corporate reporting calendar, with 164 S&P 500 companies set to deliver quarterly results.

Before Tuesday’s opening bell, earnings are expected from big names such as Merck, UnitedHealth Group, and Boeing. Procter & Gamble is also due to report, just a day after announcing the exit of CEO Jon Moeller.

Later in the day, Visa will take the spotlight. Analysts are watching closely to assess the health of U.S. consumers amid global tariff uncertainty, with Mastercard also in focus this week.

European companies also delivered notable results: AstraZeneca beat profit expectations, thanks in part to strong sales in oncology. Barclays exceeded income forecasts, helped by market volatility following Trump’s April tariff moves.

Meanwhile, Philips shares jumped after it raised its full-year margin outlook, having taken a smaller-than-expected tariff hit. On the other hand, Stellantis slipped after its new CEO flagged “challenges” despite forecasting stronger revenues in the latter half of the year.

Key U.S. Economic Data on Deck

Tuesday brings the latest JOLTS survey—a closely followed indicator of job openings and labor market health. Analysts forecast a slight dip to 7.51 million from the previous 7.77 million.

These labor metrics will set the tone ahead of more consequential releases, including the ADP payroll report and Friday’s July jobs numbers.

Also due is July’s consumer confidence index, which is expected to improve from June’s level.

In a note, analysts at ING said: “Ahead of tomorrow’s FOMC meeting, which could also prove dollar positive, today sees the release of US JOLTS job opening data and also July consumer confidence. The former is expected to show some stability (at around the 7500k mark) and the latter is expected to pick up in line with the strong stock market.”

The Federal Reserve kicks off its two-day meeting Tuesday, with markets broadly expecting no change to interest rates. Several Fed officials have hinted recently that maintaining current rates may be prudent until the economic effects of recent tariff moves become clearer.

Nvidia Boosts Chip Orders Amid Strong Chinese Demand

Nvidia has placed an order for 300,000 of its H20 AI chips with TSMC, Reuters reported, citing unnamed sources. This comes after the U.S. government reversed an earlier ban, allowing Nvidia to resume sales of the chips to Chinese firms.

The report stated the new order adds to an existing stockpile of 600,000 to 700,000 H20 chips. Around 1 million units were sold in 2024, according to estimates from SemiAnalysis.

While less powerful than Nvidia’s H100 or Blackwell chips, the H20 was developed specifically for the Chinese market. CEO Jensen Huang said during a recent appearance in Beijing that ramping up production could take as long as nine months.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

The U.S. dollar continued to climb in early trading Tuesday, while the euro lost further ground after a major trade agreement between the United States and the European Union. Investors are also keeping a close eye on the Federal Reserve’s policy meeting, which begins later in the day.

As of 04:10 ET (08:10 GMT), the U.S. Dollar Index—which gauges the greenback against a basket of six major currencies—rose 0.2% to 98.607, extending the previous session’s upward move.

Dollar Finds Support from Transatlantic Deal

The greenback regained momentum following the announcement of a new trade framework between Washington and Brussels. Under the terms of the deal, a 15% import tariff will be applied to European goods entering the U.S.

In addition, the European Union has committed to invest approximately $600 billion in the United States and to significantly increase its purchases of American energy and defense-related products.

Meanwhile, attention is also turning to upcoming talks between the U.S. and China in Sweden. Media speculation suggests both countries might agree to prolong their current trade truce, which could ease global economic uncertainty.

With geopolitical tensions calming, focus has shifted to a wave of key economic data expected this week, starting with the Fed’s two-day policy meeting.

Among Tuesday’s top releases is the JOLTS report—a widely followed indicator of job vacancies and labor market trends. This will be closely watched ahead of Friday’s July nonfarm payrolls report, a key barometer for the U.S. economy.

Also on the docket is consumer confidence data from the Conference Board. Economists anticipate an uptick in sentiment compared to June.

“Ahead of tomorrow’s FOMC meeting, which could also prove dollar positive, today sees the release of US JOLTS job opening data and also July consumer confidence. The former is expected to show some stability (at around the 7500k mark) and the latter is expected to pick up in line with the strong stock market,” said analysts at ING, in a note.

Euro Slips Further Amid Unease Over Trade Terms

The euro continued its slide, with EUR/USD dropping 0.3% to 1.1559, deepening losses after a 1.3% plunge on Monday—its sharpest one-day decline in more than two months.

Concerns are rising across Europe that the bloc may have gotten the short end of the deal with Washington. French Prime Minister Francois Bayrou labeled it “a dark day,” while German Chancellor Friedrich Merz warned the agreement could bring “significant” economic harm to Germany.

“We have been arguing for some time that EUR/USD could come under pressure this quarter, and arguably, EUR/USD is now in a more fragile position than we had been expecting ahead of a big week for event risk,” said ING.

“EUR/USD price action remains very poor. And if it can’t rally above 1.1600/1625 on any good news today, it could well take out support – both at 1.1555 and 1.1500.”

The British pound also declined, with GBP/USD sliding 0.2% to 1.3335, touching its lowest level in two months.

“There is a technical case now for GBP/USD to trade down to the 1.3150 area. That is our preference in a week where we think the event risks are skewed to the positive for the dollar,” ING added.

Yen Steady Ahead of Bank of Japan Decision

In Asia, the Japanese yen saw limited movement, with USD/JPY edging down 0.1% to 148.41 after modest gains the day before.

The Bank of Japan is widely expected to keep interest rates unchanged when it meets on Thursday, amid a backdrop of stable trade conditions and lingering political uncertainty at home. Some analysts, however, believe last week’s U.S.-Japan trade agreement might give Japanese policymakers room to consider a rate hike later this year.

Investor sentiment remains subdued in Japan following a major electoral setback for the ruling coalition in last week’s upper house vote, which has fueled rumors of a possible resignation by Prime Minister Shigeru Ishiba.

Elsewhere, AUD/USD declined 0.3% to 0.6503, adding to Monday’s 0.7% drop, while the Chinese yuan remained flat, with USD/CNY holding steady at 7.1777.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.