The July 2025 edition of Market Services FX Spotlight features global market news and insights from RBC Investor Services’ Foreign Exchange (FX) Market Trading Desk.
Headlines
Developments surrounding trade deals were largely sidelined with geopolitics taking centre stage during the month of June while central banks and markets assessed the effects of tariffs on the economy.
—Market Services FX Spotlight
- China and US trade talks took place in London between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, which came after an initial pause on tariffs was implemented in Geneva.
- The ECB cut rates by 25 bps to 2% at the June meeting.
- The Bank of Japan meeting yielded no change to the policy rate, which remained at 0.5%—a move that was unanimous and widely forecasted.
- The FOMC decision to hold rates steady was widely expected, but the economic projections and dot plot held the main takeaways for market participants.
- Trade talks between Canada and the United States have progressed according to Canadian Prime Minister Mark Carney, although major differences surrounding aluminum, aerospace and defence require further mediation.
- May inflation in Brazil eased driven by lower food inflation, and Colombia suspended a fiscal rule that curbed government deficits on June 10.
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