The European Central Bank is likely to hold off on interest rate cuts in response to Trump’s tariffs, delaying a decision until the tariffs are implemented. Concerns about inflation, a strong euro, and political instability in France may prompt a rate cut in September. President Lagarde may hint at future cuts.

Economic reports in the coming week, including bank lending surveys and consumer confidence data, will guide the ECB’s decision-making process. Germany and Italy will release key economic indicators, while the UK will focus on inflation and retail sales. Investors will also monitor global inflation trends and central bank decisions.

The US housing market faces challenges as sales of existing and new homes stagnate due to high mortgage rates and affordability issues. Durable goods orders and manufacturing surveys will provide insight into the health of the US economy. Fed policymakers are in a blackout period before their July meeting.

Asia’s economic data will offer signals on trade and inflation trends. South Korea, China, Australia, and India will release important economic indicators. Japan will round out the week with key data releases. Singapore, New Zealand, and Thailand will also provide insights into their economic health.

Other central banks across the world are expected to maintain or adjust interest rates. Nigeria, Hungary, Ukraine, Turkey, Russia, and Argentina will make policy decisions. Mexico and Brazil will release inflation and economic activity data. Analysts are closely watching for signs of economic recovery and stability amidst global uncertainties.

Inflation expectations, trade policies, and borrowing costs continue to impact global economies. Central banks are navigating challenges to maintain economic stability and growth. Market volatility and geopolitical tensions are key factors influencing policymakers’ decisions across regions.

Read more at Yahoo Finance: ECB won’t flinch yet in the shadow of Trump’s trade war