The European Central Bank (ECB) maintained its policy rate, signaling a pause after seven consecutive cuts, while Fed-related drama resurfaced as Treasury Secretary Scott Bessent called for reforms and questioned Powell’s leadership, though President Trump denied any plans to remove him.

In the U.S., the Services PMI surged to 55.2, while Manufacturing slipped to 49.5. The Eurozone saw its Composite PMI rise to an 11-month high of 51.0, driven by services, whereas the UK’s reading dropped amid ongoing labor market strain. Germany’s IFO Index came in just below expectations, indicating lingering business caution.

The euro climbed to its highest level since 2021, touching $1.1780, while the Dollar Index slipped toward 97 with easing trade tensions and shifting rate expectations. In commodities, gold retreated to around $3,345 as safe-haven demand softened, silver pulled back from multi-year highs, and Bitcoin faced resistance just below $120,000, with profit-taking capping further gains.

The Eurozone growth was supported by consumption, exports, and investment, but global trade tensions and geopolitical risks remain key concerns. ECB's Lagarde noted solid labor markets and increased public investment, but acknowledged downside risks and uncertain inflation dynamics.

The U.S. moved to a flexible tariff strategy, adjusting rates based on cooperation levels. Deals with the EU and Japan introduced a 15% base tariff, easing tensions. However, the EU has prepared a $100 billion countermeasure if talks stall. New deals with the Philippines and Indonesia also emerged, imposing up to 40% on transshipped goods, while exempting nearly all U.S. exports. The U.S.–EU tariff deadline on August 1 could spark new moves, while earnings from tech giants will shape sentiment.

Take a look at our detailed weekly report for more insights.