Markets remain rangebound as US holiday keeps things quiet | Forexlive

There’s basically nothing on the agenda today other than the Canadian Services PMI. The newsflow has been very limited and the price action in markets has been mostly rangebound. The NFP spikes have mostly been erased both in FX and US equity indices.

The White House today is expected to begin sending letters to trade partners with the new tariff rates they are going to pay the US. Trump said that he expected “10 or 12” letters to be sent today with more coming in the next days and the process should be completed by the next week’s July 9th deadline.

The worrying part is that he added that tariffs will range “from 60% or 70% to 10% and 20%”. The good news is that he attached once again a deadline, that is August 1st, which is when the US will start to earn the new tariffs. Trump has been playing this game since the “Liberation Day” back in April, so it might be another empty threat just to speed up the process and get the countries to accept 10-20% tariffs.

In the past months, we had multiple reports saying that businesses have been planning with a 10-20% tariff range in mind, so higher than that would be above expectations and therefore a negative growth driver. It might not matter until August 1st, but it’s still a risk.