Daily Wrap Up – 5 July

The markets were calm in today's trading amidst the absence of important data and events on the economic calendar, as the markets are awaiting the minutes of the Fed's last meeting in June which raised interest rates to 1.25%, plus the issue of reducing its balance.

China and Germany are seeking to work more closely on many issues, most notably a free trade agreement, pointing out that the two countries are about to enter a new phase. This follows news that both Japan and the European Union are about to sign a free trade agreement.

There was also news today that the BOJ would cut its inflation expectations and stop expanding its monetary stimulus program this month, which would be a challenge for BOJ Governor Kuroda, who will try to convince everyone that its stimulus policy is working and fulfilling.