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Demand for Germany's 10-year government bonds cools down, analysis of short-term trends of spot gold, silver, crude oil and foreign exchange on July 23
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Hello everyone, today XM Foreign Exchange will bring you "[XM Foreign Exchange]: Demand for Germany's 10-year government bonds has cooled down, and the short-term trend analysis of spot gold, silver, crude oil and foreign exchange on July 23". Hope it will be helpful to you! The original content is as follows:
Global Market Review
1. European and American market trends
The three major U.S. stock index futures rose, Dow futures rose 0.44%, S&P 500 futures rose 0.35%, and Nasdaq futures rose 0.15%. The German DAX index rose 0.59%, the UK FTSE 100 index rose 0.47%, the French CAC40 index rose 0.99%, and the European Stoke 50 index rose 0.88%.
2. Market news interpretation
Demand for Germany's 10-year government bonds has cooled down? What does a slight decline in yield imply?
⑴ German Federal Bank (BUBA) announced that Germany sold 3.832 billion euros of 10-year 2.60% supplementary government bonds in the latest round of auction.
The average rate of return for this auction is 2.62%, slightly lower than the last (previous value). ⑶ Although the yield has decreased, the subscription multiple (bid/cover) of this auction is 1.5, lower than the last 1.6. ⑷ The decline in subscription multiples indicates that the market demand for Germany's 10-year government bonds has cooled slightly. ⑸ This change may reflect subtle adjustments to investors' future economic outlook or the ECB's monetary policy expectations. ⑹ Nevertheless, German government bonds, as one of the safest assets in the euro zone, remain at a relatively healthy level. ⑺ Lower average yields may help reduce the German government's borrowing costs. ⑻Investors need to pay close attention to the subsequent performance of the German Treasury bond market to evaluate the long-term trend of market sentiment. ⑼The results of this auction may also have a certain impact on the issuance of government bonds in other countries in the euro zone.
Labor shortage in JapanRetail stores strengthen AI use
Due to labor shortage, some Japanese retail stores have introduced artificial intelligence (AI) to help process orders and manage inventory to improve work efficiency. According to the Japan Broadcasting Association on the 22nd, FamilyMart Convenience Store introduced AI technology in about 500 stores in Japan in June this year, which can recommend purchasing lists for stores by analyzing sales, customer flow and weather in the past year. FamilyMart said that the system can reduce the order time by half and reduce the out-of-stock rate by about 4%. This technology may be introduced in more stores in the future.
Bestert said Japan locked in preferential tariffs with innovative financing mechanisms. All investment eouu.cnmitments are new capital. U.S. Treasury Secretary Scott Besent did not make it clear whether the EU can reach a trade agreement similar to Japan with the United States, emphasizing that Japan's success is due to its innovative financing arrangements. "They get a 15% tax rate because they are willing to provide this innovative financing mechanism," Becent said in an interview Wednesday when asked whether other U.S. trading partners can get similar reciprocity tariffs to Japan. Japan originally faced a 25% tariff, but its negotiators reached an agreement with the United States to reduce the tax rate to 15%, including tariffs on imported cars (otherwise a 25% tax rate specifically for cars would apply). The agreement also includes a $550 billion fund to invest in the United States. “They put forward a vision for the Japan-US partnership to us, and they will provide equity, credit and financial support for major U.S. projects,” Besent said. He also noted that these foreign direct investment eouu.cnmitments “are all new capital.” FHFA Director-General accused Powell of raising the housing burden
FHFA Director-General Bill Pulte said Fed Chairman Powell is maintaining interest rates at "artificially high levels" and "intensifying" housing problems. Pulte, one of the officials to visit the Federal Reserve headquarters on Thursday, said he would seek information on the building’s renovation contract and how Powell was involved.
Bestert: Trump has said that he will not fire Powell
U.S. Treasury Secretary Becent said today that Trump has said that he will not fire Powell. His regular meeting with Powell will continue, and Powell has not yet stated that he will leave the eouu.cnmittee seat. Forexlive analysts say the whole story about Trump and Powell is just noise, as Powell is unlikely to leave the Fed or be fired due to huge negative economic impacts. Analysts say this is not the first time the Fed chairman has been under such great political pressure, and it is a good thing that the Fed maintains independence. Without independence, inflation expectations will lose their anchorage and the economic consequences will be severe.
Saudi has become Russia's largest fuel buyer? The global energy landscape has quietly changed drastically
⑴ According to traders and LSEG data, in June 2025, Saudi Arabia became Russia's maritime fuel oil and pressure-reducing gas oil (VG)O) The largest destination for export. ⑵ Saudi Arabia's direct sea freight volume to Russia's fuel oil and VGO increased by 9% month-on-month to 800,000 tons, mainly driven by increased summer energy demand. ⑶ Since the EU has eouu.cnpletely embargoed Russian oil products in February 2023, Middle Eastern and Asian countries have become the main destinations for Russian fuel oil and VGO supply. ⑷ Shipping data shows that the load of dark oil products shipped to India and Türkiye last month fell 49% to 340,000 tons and 33% to 280,000 tons, respectively. ⑸ In June, nearly 400,000 tons of fuel oil and VGO were transported from Russian ports to the AinSukhna terminal in Egypt, which is an important fuel hub and is often used for the storage and re-export of petroleum products. ⑹Singapore, Senegal, etc. were also other major destinations for Russian fuel oil and VGO exports last month. ⑺ Currently, only two ships carrying 180,000 tons of fuel oil are detouring to Asia through the Cape of Good Hope in Africa. ⑻From December 2023, traders have begun to detour Russian oil products cargo through Africa as the risk of armed Houthi attacks in Yemen has increased, in order to avoid the Red Sea route.
The historic trade agreement shocked the market, Japan invested $550 billion, and the automobile industry ushered in spring?
⑴ Trump reached a trade agreement with Japan, successfully reducing tariffs on imports of automobiles and exempting new punitive tariffs on other Japanese goods. ⑵In exchange, Japan promised to provide up to $550 billion in investment and loans to the United States, aiming to build a flexible supply chain in key areas such as medicines and semiconductors. ⑶ According to the agreement, the current relevant tariffs for the Japanese automobile industry will be reduced from the previous 27.5% to 15%, while the tariffs for other Japanese goods that were originally scheduled to eouu.cne into effect on August 1 will also be reduced from 25% to 15%. ⑷ The news immediately ignited the Japanese stock market, with the Nikkei soaring nearly 4%, setting a year-on-year high, with Toyota's stock price rising by more than 14%, and Honda also rising nearly 11%. ⑸ Japanese Prime Minister Shigeru Ishiba praised the agreement as "the lowest tariff rate among countries with a trade surplus with the United States". Bank of Japan Deputy Governor Shinichi Uchida also called it "huge progress", believing it will help reduce uncertainty in the economic outlook. ⑹In 2024, the bilateral trade volume between the United States and Japan was close to US$230 billion, and Japan's trade surplus with the United States was nearly US$70 billion. ⑺ Despite the good agreement, US automakers expressed dissatisfaction, believing that the agreement's tariffs on imported cars on Japan are lower than those produced in North American cars in Canada and Mexico, which is unfavorable to the domestic U.S. industry. ⑻Ryomasato Akasawa, chief representative of Japan's trade negotiations, said the agreement does not cover Japanese steel and aluminum products that are still affected by 50% tariffs. ⑼ The agreement also includes Japan's cancellation of additional safety tests on imported cars and trucks in the United States. ⑽The general optimism in the market spread to South Korea and European automakers, prompting speculation that a similar trade deal could be reached.
3. Trends of major currency pairs in the New York Stock Exchange before the market
Euro/USD: As of 20:23 Beijing time, the euro/USD fell and is now at 1.1726, a drop of 0.24%. Before the New York Stock Exchange, the price of (Euro/USD) isIts recent intraday levels have fallen, eouu.cnpleting its attempt to gain positive momentum, which may help it recover and break through the current resistance of 1.1750 and attempt to unload its apparent overbought conditions on (RSI), especially with the emergence of negative signals, which occurs on the continuation of positive pressure from its trading above the EMA50, and dominant with the main bullish trend on a short-term basis, and its supportive slash trading along the trend.
GBP/USD: As of 20:23 Beijing time, GBP/USD rose, now at 1.3535, an increase of 0.07%. Before New York, the (GBPUSD) price fell in the last session after leaving the bearish channel range that short-term limits its previous trading, taking advantage of the continued positive support of its trading price above the EMA50, trying to collect gains from previous gains, trying to abandon some of its apparent overbought conditions on (RSI), especially as they show negative overlap signals to collect positive forces that may help them break through that resistance.
Spot gold: As of 20:23 Beijing time, spot gold fell, now at 3425.67, a drop of 0.17%. Before the New York Stock Exchange, after reaching overbought levels, the (gold) price fell on the last trading day due to negative signals on the (RSI), which pushed the price to try to get rid of this situation and take a breath after the previous bull market.
Spot silver: As of 20:23 Beijing time, spot silver rose, now at 39.390, an increase of 0.33%. Before New York, the (silver) price closed higher in the last intraday trading to confirm a breakthrough of the key resistance level of $39.00, supported by its continuous trading above the EMA50, forming a dynamic support for maintaining the stability of the bullish track, accompanied by a short-term major bullish trend, except for the positive signal on (RSI), despite reaching an overbought level.
Crude oil market: As of 20:23 Beijing time, U.S. oil fell and is now at 65.060, a drop of 0.37%. Before the New York Stock Exchange, (crude oil) prices closed higher on the last trading day, taking advantage of the positive signals on (RSI) that had previously reached oversold levels to help them get rid of this situation and achieve some temporary technical gains.
4. Institutional View
Barclays: Eurozone inflation is expected to decline in July
Balduin Bippus and Mark CusBabic of Barclays Research wrote in a report that the eurozone inflation rate may decline in July. Overall inflation in June rose slightly to the 2.0% target set by the European Central Bank, while it was below 2% in May. But Bippus and CusBabic said inflation in July may fall again and energy costs increase The rapid slowdown will lower the overall inflation rate to 1.9%. They say that the core inflation rate excluding energy prices should fall as prices in services such as vacations slow, and inflation for some eouu.cnmodities slows. According to Barclays estimates, core inflation should rise 2.2%, down from the 2.3% increase in May.
Institution: Trump will remain at Powell, possibly shaping the Fed through appointments
Pinhao Tiffany Wilding said in a report that although U.S. President Trump may continue in the near term Continued criticism of the Fed and advocates a rate cut, but he will not fire Fed Chairman Powell. Trump will instead start reshaping the Fed with an upcoming appointment, first of all, director Adriana Kugler's term expires next January and Powell's term of chairman expires next May. Powell's term of director will last until January 2028, which is different from his chairmanship. No matter who Trump chooses to serve as the next president, this person must do the same for monetary policy as any Fed leader, Wilding said St. Mark made a credible argument, first confirmed by the Senate, and then received majority support from the US Federal Open Market eouu.cnmittee.
The above content is all about "[XM Forex]: Demand for 10-year German Treasury bonds has cooled down, and the short-term trend analysis of spot gold, silver, crude oil, and foreign exchange on July 23" was carefully eouu.cnpiled and edited by the editor of XM Forex. I hope it will be helpful to your trading! Thank you for your support!
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