The UK government borrowed £20.7 billion in June, compared to £16.5 billion expected.Rachel Reeves may hike taxes in the Autumn Budget.GBP/USD consolidates at 1.3470.GBP/USD is consolidating around 1.3470 after gains of 0.5% in the previous session. Risk sentiment is slightly weaker amid uncertainty over Trump’s trade tariffs, supporting demand for the safe-haven USD.So far, the US has announced trade deals with the UK, Vietnam, Indonesia, and a limited framework deal with China. Major trading partners, including Canada, Mexico, Japan, and the European Union, have received letters establishing rates at high levels in the event that no deal is reached by August 1st.The pound is showing resilience despite a deteriorating domestic outlook and challenging fiscal position. Data showed that the UK government borrowed more than expected in June, with public sector net borrowing totaling £20.7 billion last month, higher than the £ 16.5 billion forecast and the second-highest for June on record.A strong inflation reading in April pushed up inflation-linked government bond payments, taking interest payable on government debt to £16.4 billion in June, the highest since records began in 1997.Rachel Reeves is widely expected to raise taxes in a budget statement in the autumn to remain on track to meet her targets for fixing public finances. The recent U-turn on welfare, along with headwinds, has met with criticism, leaving a couple of key areas in the government’s fiscal position unaddressed. Tax rises are considered deflationary and could further slow the already stagnant economy.Looking ahead, attention will be on PMI data on Thursday for queues over economic activity. Attention will be paid to the jobs and prices paid sub-components, following last week’s data showing that unemployment rose to 4.7% and inflation also increased to 3.6%.GBP/USD Forecast – Technical AnalysisAfter falling back from the 3.5-year high of 1.3790, GBP/USD found support at 1.3380 and bounced higher, rising back above 1.34 and testing the rising trendline resistance. However, the RSI remains below 50.Buyers would need to retake this resistance and the 50 SMA at 1.35 to extend gains towards 1.36.Failure to retake this resistance could see the price fall again to test support at 1.3435 and 1.3380. A break below 1.3380 would create a lower low and open the door to deeper losses, potentially reaching 1.3250.DAX Slips on Tariff Nerves and as Earnings Kick OffThe August 1st tariff deadline looms closer with no EU-US dealSAP reports later today as earnings kick offDAX hovers below record highThe DAX is trading lower on Tuesday amid A cautious mood due to uncertainty over US-EU trade talks and as corporate earnings season kicks off.President Trump’s August 1 deadline is looming ever closer. If no deal is agreed beforehand, 30% import duties will be applied to EU goods entering the US, and the EU will likely apply countermeasures.EU diplomats are reportedly considering a wide range of countermeasures against the US, should severe trade tariffs be implemented; these could allow the EU to target US services for access to public tenders.Separately, an EU survey released on Monday showed that eurozone firms remained optimistic about the outlook, but noted pressures on profits due to trade tensions.Eurozone economic calendar is quiet today. Attention is turning to Thursday’s ECB rate decision, where the central bank is widely expected to leave interest rates unchanged at 2% until there is more clarity over the trade tariff position.Investors will now turn their attention to earnings, with a big week ahead for corporate updates from Wall Street and European companies, including SAP, the region’s largest software maker, later in the day.DAX Forecast - Technical AnalysisThe DAX extended its recovery from the 23k low, running into resistance at 24,636, a record high, before easing back. The price continues to trade above the rising trendline and the 50 SMA at 24,000; however, momentum is slowing.Buyers will need to successfully defend the 24k support to extend gains towards 24,636 and fresh record highs.Sellers will look to take out $24,000, opening the door to support at $ 23,400, the March high. It would take a move below 23,000 to create a lower low and change the chart’s structure.Original Post