Market Summary (Jul 2, 2025)

We see growing US dollar pressure into the July 9 tariff deadline, amplified by renewed threats of 30–35% levies on Japan, which should underpin further gold upside once resistance near 3,370 is decisively cleared. The Fed’s data-dependent approach keeps rate-cut timing in question, so a dovish surprise would likely lift equities, steepen the curve, push yields lower and weaken the dollar (per recent cross-asset scenarios), whereas a growth-driven slowdown could see stock pullbacks despite similar yield moves. Domestically, reduced ISA allowances will modestly support the FTSE, but broader global markets remain focused on US policy flows; EUR USD and silver are likely to stay range-bound absent fresh catalysts.