SocGen's Overnight Economic News Summary

05:59 AM EDT, 07/08/2025 (MT Newswires) -- Societe Generale in its early Tuesday economic news summary pointed out:

-- US dollar soft with lower United States Treasury yields in Asia, yen (JPY) and won (KRW) fractionally firmer after President Trump announces intent to impose 25% tariffs on goods from Japan and South Korea on Aug. 1, raise levies on South Africa, Indonesia, Thailand and Cambodia. Deadline not firm, open to extensions.

-- Reserve Bank of Australia leaves cash rate target at 3.85% by 6-3 MPC vote versus consensus forecast of 25bps cut to 3.60%. Board needs more time to judge whether inflation is on track to reach 2.5% on a sustainable basis. AUD/USD +0.7% at 0.6540, three-year ACGB yield +12bps at 3.43%.

-- Day ahead: U.S. NFIB small business optimism, three-year UST auction. European Central Bank speaker Nagel. Romania's central bank (NBR) forecast to stay on hold. Chile's consumer price index.

-- CFTC foreign exchange positions: euro net longs reduced to 13.8%, yen longs trimmed to 40.5%, sterling longs decreased to 16.6%, Australian dollar shorts reduced to 46.3%, Canadian dollar (CAD or loonir) shorts raised to 31.2%, short Swiss franc upped to 32.8%, Mexico's peso longs increased to 35.6%.

-- Nikkei +0.1%, EUR 10-year IRS 2.5bps at 2.62%, Brent crude -0.3% at $69.4/barel, Gold -0.1% at $3,333/oz.

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