As July 9, the deadline set by Trump, approaches, the United States main trading partners spent the weekend rushing to finalize trade agreements or lobbying for more time. Meanwhile, Treasury Secretary Scott Bessent stated that some countries that fail to reach an agreement by Wednesday's deadline would be granted a three-week extension to continue negotiations.
"We're going to be very busy over the next 72 hours," Mr. Bessent said on Sunday, referring to the time left before the administration's July 9 cutoff.
Trump posted on social media late Sunday that the tariff letters would start going out at noon on Monday, Washington time. He had previously said that letters to 15 trading partners were already prepared and awaiting dispatch while also suggesting that some agreements were imminent. "I think we'll have most countries done by July 9, either a letter or a deal," the US president stated.
On Sunday, in interviews with two programs, Bessent made it clear that the letters President Donald Trump was about to send to trading partners this week would not be the final word on immediate tariff rates. The tariffs would take effect on August 1, meaning those who are still far from a deal have time to put forward their proposals.
Bessent said the focus is on 18 key trading partners, and several major agreements are close to completion, though the other side continues to stall. It is worth noting that Trump and his officials have repeatedly claimed that trade deals were about to be signed and were inevitable, but so far, they have not materialized. Agreements have so far been signed with the United Kingdom, a trade truce was reached with China, and a pact was concluded with Vietnam.
The latest remarks from Trump and Bessent suggest that the negotiations remain volatile. The Treasury Secretary has said Washington is applying maximum pressure on its trading partners and that in talks with the European Union, a bloc of 27 countries that accounts for nearly a fifth of total US goods trade, there has been very good progress.
South Korea is also worried about car tariffs and is discussing with US officials the possibility of extending the deadline in a last-ditch effort to avoid higher duties.
Japanese Prime Minister Shigeru Ishiba recently said that Japan was prepared for all possible tariff scenarios. "Japan — another major auto producer trying to avoid Trump's tariffs — is ready to stand firm and defend its interests while anticipating every possible situation," the prime minister stated.
On Friday, Cambodia's government said it had reached a framework agreement with the United States, which would be published soon, pledging continued close cooperation. The Southeast Asian country is a major exporter of textiles and footwear to the US.
According to the country's chief negotiator, Indonesia indicated last week that it was close to finalizing a trade deal with the US that would cover key minerals, energy, defense cooperation, and market access ahead of the looming tariff deadline.
Thailand has also made a last desperate attempt to avoid the imposition of a 36% US tariff on its exports by offering broader market access for American agricultural and industrial goods and increasing purchases of energy products and Boeing aircraft.
However, markets apparently have grown tired of reacting to all this, so none of it has led to significant moves.
As for the current technical picture for EUR/USD, buyers now need to think about how to reclaim the 1.1790 level. Only this would allow them to target a test of 1.1825. From there, they could aim for 1.1866, though doing so without support from major players would be quite difficult. The most distant target will be the 1.1910 high. If the instrument declines, I expect any serious buying activity only around the 1.1750 area. If no major buyers emerge there, it would be preferable to wait for a move below the 1.1715 low or to open long positions from 1.1675.
Regarding the current technical picture for GBP/USD, pound buyers need to reclaim the nearest resistance at 1.3640. Only then will they be able to target 1.3675, above which a breakout will be quite difficult. The furthest target would be the 1.3710 area. If the pair falls, the bears will try to seize control over 1.3600. Should they succeed, a break below this range would deal a serious blow to the bulls' positions and push GBP/USD down to the 1.3565 low with the prospect of reaching 1.3535.
