In June, India’s foreign exchange reserves increased from $697.94 billion to $702.78 billion

    by VT Markets
    /
    Jul 4, 2025

    India’s forex reserves increased from $697.94 billion to $702.78 billion in June 2023. This information provides an update on the country’s financial health.

    EUR/USD has maintained a constructive stance, staying below 1.1800. With US markets closed for the July 4th holiday, the currency pair is on track to end the week positively.

    gbpusd price action

    The GBP/USD pair fluctuates around 1.3650 amid thin trade conditions and watchfulness over UK political tensions. The market exhibited scant volatility due to the inactivity in the US.

    Gold prices remain steady around $3,300 per troy ounce. Anticipation surrounds potential US Federal Reserve rate cuts, impacting the precious metal’s future movements.

    Geopolitical concerns ease, yet tariff risks linger. The possibility of aggressive tariff hikes by Donald Trump remains, although high rates announced earlier may not be reinstated.


    Focus remains on developments in both Asia and the US, particularly regarding recent legislative actions there. Trump’s “Big, Beautiful Bill” has passed the Senate, sparking reactions and debate.

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    For trading EUR/USD in 2025, several competitive brokers can offer fast execution and high-capacity platforms. This guidance suits both beginners and experts navigating the Forex market.

    India’s foreign exchange reserves swelling past the $700 billion mark once again underscores a sturdy external balance sheet. While not an immediate trigger for currency traders, the gradual increase in reserves tends to support better exchange rate management. With more dollars in hand, pressure on the rupee due to external shocks—whether commodity-driven or geopolitical—becomes more manageable. Though not a directional signal, it’s something to weigh when constructing positions that are dependent on the rupee or assets closely correlated to it.

    In the major pairs, EUR/USD holding steady below 1.1800 has been consistent with broader flows dominated by US dollar positioning. The US Independence Day holiday put a procedural lid on any major moves midweek, but in our reading, the pair preserving its recent gains suggests that markets may still be pricing in a weaker dollar narrative over the summer—for now. Inflation expectations and commodity inputs feeding into core European macro data haven’t dislodged this trend. If you’re running options or futures built on EUR/USD, maintaining exposure on the upside in the medium term seems supported by recent structural buying activity.

    As for sterling, GBP/USD sitting near 1.3650 paints a slightly different picture. Price action has been reluctant to break from this middle ground, largely due to political standoffs and constrained liquidity. The tailwind the pound enjoyed earlier this year has faded, and while not reversing completely, the market has adopted a more restrained posture. Elevated hedging costs suggest caution. If recent UK parliamentary developments begin to ease some uncertainty, we may see a slow rotation back into pound-denominated risk, which could reshape forward curves.

    On the metals side, gold’s rangebound trade at $3,300 per ounce signals underlying tension between interest-rate expectations and safe-haven demand. The market is deliberately indecisive here. The sticky nature of US core inflation complicates expectations for the Federal Reserve. Traders holding long-dated bullion contracts face the headache of balancing election-year uncertainty with interest rate expectations that remain volatile. We’ve noticed a modest pick-up in call volume around $3,350 strikes, consistent with some desks placing asymmetric bets on a US policy shift in the back half of the year.


    On the geopolitical front, rhetoric may have cooled for now, but market participants are pricing in residual friction from possible trade policy escalations. The tariff theme remains largely a tail risk, not priced in fully but floating in the options market via skewed implied volatilities. Recent legislative milestones in the US, like Trump’s large-scale bill passing through the Senate, have generated chatter about downstream trade and tech exposure. How that translates into sector rotation within FX markets is still developing. But early signs in derivatives markets do suggest a modest tilt towards hedging Asia-exposed positions.

    For 2025, accessing deep liquidity and rapid execution remains paramount, especially for those aiming to trade short-duration shifts in euro or dollar volatility. When spreads narrow and reversals speed up—conditions becoming more common in calendar roll periods—having platforms that don’t throttle during volume spikes is less convenience, more necessity. Fundamental oversight must continue alongside technical signals in these environments.

    Our observation is that algorithmic flows haven’t hit extremes yet, despite some front-end signals showing stretched RSI levels. However, we’re approaching quarterly rebalancing—a period typically marked by more erratic moves, especially in low participation sessions. Keeping a flexible structure—ideally one with defined stops but breathing room—is worth considering in the current market pattern.

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