FOREX NEWS & BLOG

As a reminder, this is sort of half of a trade deal but still relevant as the details of which are now going into effect as of today. The agreement will see tariffs against UK’s automotive and aerospace sectors being reduced. From the announcement:

• UK car manufacturers can now export to the US under a reduced 10% tariff quota
• UK aerospace sector will have 10% tariffs on goods like engines and aircraft parts removed

For some context, the previous tariff on autos were in total 27.5%. So, that’s a positive step forward at least. And for the UK, they’d at least be able to fly under the radar for a while longer as Trump has other trade deals to settle.

The full release here.

This article was written by Justin Low at www.forexlive.com.

Feed from Forexlive.com

MoneyMaker FX EA Trading Robot

Canada rescinds Digital Services Tax. Via a Canada finance ministry statement on Sunday.

CAD jumps a little higher.

On Friday we had this:

• Trump cancels trade talks with Canada

Adam suggested that:

• I imagine this is all theatre as Trump lays the groundwork for a deal.
• Canada is obviously prepared to drop this tax if the US drops tariffs.

Spot on.

So, Canada rescinds digital services tax:

• Trump and Carney agreed to resume negotiations.
• Target is a trade deal by July 21.

This article was written by Eamonn Sheridan at www.forexlive.com.

Feed from Forexlive.com

MoneyMaker FX EA Trading Robot

The news is here:

• Canada rescinds Digital Services Tax to advance broader trade negotiations with the US

USD/CAD has dropped on the news:

The background to this was in Friday:

• Trump cancels trade talks with Canada

Adam responded to the chaos by saying:

• this is all theatre as Trump lays the groundwork for a deal
• Canada is obviously prepared to drop this tax

And that is more or less what has played out.

This article was written by Eamonn Sheridan at www.forexlive.com.

Feed from Forexlive.com

MoneyMaker FX EA Trading Robot

Japanese households are set to face sharper cost-of-living pressures in July, with a private survey showing food price hikes on more than 2,100 items — a five-fold increase from a year earlier. The average price increase is expected to be around 15%, according to Teikoku Databank, which surveyed 195 major food manufacturers. More from the survey:

• broad-based increases
• being driven by higher raw material and utility costs, rising labour and transportation expenses
• momentum for price hikes in 2025 is stronger than last year’s

Teikoku warned that further spikes in crude oil — particularly if Middle East tensions escalate — could trigger a fresh wave of inflation similar to 2022, when nearly 26,000 items saw price hikes.

The data add to pressure on the Bank of Japan, which has so far resisted further rate increases and looks set to hold until next year:

• BOJ turns dovish – leans on ‘underlying inflation’ to justify slow hikes, messaging murky
• Ueda says sustained inflation driven by stronger consumption and wages is still not fully in place

—

Coming up this week is the BOJ’s quarterly tankan survey, due Tuesday. Expected to show:

• weakening sentiment among large manufacturers
• capital spending plans remaining robust despite risks from US trade policy

This article was written by Eamonn Sheridan at www.forexlive.com.

Feed from Forexlive.com

MoneyMaker FX EA Trading Robot

Japan Industrial Production for May 2025, preliminary, +0.5% m/m for a huge miss

• expected +3.4%, prior -1.1%

and -1.8% y/y

• prior +0.5%

Industrial Production forecast 1 month ahead +0.3% m/m

• prior -3.4%
• 2 months ahead seen at -0.7%

Data via Ministry of Japan’s Economy, Trade and Industry Ministry

US tariffs threat but hasn’t even hit yet:

• automobile industry-specific tariffs of 25%
• also faces 24% “reciprocal” tariff rate starting on July 9

Japan’s government is trying to get exemptions, but Trump does not sound in the mood to compromise.

• Trump whining about unfair auto trade, wants Japan to buy more oil

more to come

Earlier re Japan:

• BOJ turns dovish – leans on ‘underlying inflation’ to justify slow hikes, messaging murky

This article was written by Eamonn Sheridan at www.forexlive.com.

Feed from Forexlive.com

MoneyMaker FX EA Trading Robot

Trump has accused Japan of engaging in unfair trade practices in the automobile sector, calling for Tokyo to boost imports of U.S. energy and goods to help narrow the trade deficit.

In a Fox News interview aired Sunday, Trump criticised the imbalance, noting that while the U.S. imports millions of Japanese vehicles, Japan takes few American-made cars in return:

• “They won’t take our cars, and we take millions of theirs. It’s not fair”
• Japan could import more U.S. oil and other products

Japan is currently trying to secure an exemption from a 25% U.S. auto tariff and avoid a 24% reciprocal tariff due to take effect July 9.

The auto industry makes up roughly 28% of Japan’s ¥21 trillion ($145 billion) in annual exports to the U.S.

This article was written by Eamonn Sheridan at www.forexlive.com.

Feed from Forexlive.com

MoneyMaker FX EA Trading Robot