In today’s Asia session, the S&P 500 and Nasdaq 100 E-mini futures recorded intraday rallies of 0.5% and 0.6%, respectively, extending gains from Friday, 25 July’s record-high closes. The rally was driven by optimism following reports of a US-EU trade agreement that has eased global market tensions.US-EU Avoid Trade War With New Tariff AgreementLate Sunday, media reports confirmed that the European Union and the United States have reached a breakthrough trade agreement after months of strained negotiations. The deal, announced by President Trump and European Commission President Ursula von der Leyen, sets a 15% tariff on EU exports to the US that includes automobiles, down from the previously threatened 30%. Full details are still pending release.Nikkei Slides Amid Political Uncertainty In JapanAsia-Pacific markets showed mixed performances. Japan’s Nikkei 225 dropped 0.9% intraday for a second consecutive loss, weighed down by domestic political instability. Local reports suggest the Liberal Democratic Party is moving to initiate a parliamentary vote to replace Prime Minister Ishiba.US-China Trade Talks Resume In StockholmThe third round of US-China trade negotiations begins today in Stockholm. According to the South China Morning Post, both nations are expected to agree on extending the current tariff pause by 90 days, pushing the deadline beyond 12 August and signaling ongoing diplomatic engagement.Hang Seng Rebounds While Singapore Market ConsolidatesHong Kong’s Hang Seng Index gained 0.5%, recovering from Friday’s losses. Meanwhile, Singapore’s Straits Times Index declined 0.3% for a second straight session as investors paused after an 11% rally since 23 June.Dollar Recovers as Euro Reverses GainsThe US dollar regained earlier intraday losses triggered by the US-EU trade news. The euro erased a 0.2% gain and now trades flat, while the Japanese yen and Swiss franc declined 0.2% and 0.3% respectively, with yen weakness tied to local political developments.Gold Rebounds Slightly Ahead of FOMCGold (XAU/USD) edged up 0.1% intraday after a three-day slide. Traders remain cautious as they weigh trade deal optimism against anticipation of the upcoming FOMC meeting on 30 July. Market participants are watching for signs that Fed Chair Powell may pivot toward a more dovish stance, potentially setting up a rate cut at the September meeting.Economic Data ReleasesFig 1: Key data for today’s Asia mid-session (Source: MarketPulse)Chart of the Day – Bullish Flag Breakout for CHF/JPYFig 2: CHF/JPY minor & medium-term trends as of 28 July 2025 (Source: TradingView)The CHF/JPY cross pair staged a minor bullish flag breakout last Friday, 25 July, with a positive follow-through in today’s Asia session.In addition, the hourly RSI momentum indicator has continued to hover above its 50 level and parallel ascending trendline support without hitting its overbought region (above 70) at this juncture.These observations suggest that minor corrective consolidation in place since 16 July is likely to have ended, and the CHF/JPY may be in the process of staging a potential fresh bullish impulsive up move sequence within its medium-term uptrend phase (see Fig 2).Watch the 185.10 short-term pivotal support for the next intermediate resistances to come in at 186.70, 187.30/187.70, and 188.80.On the flip side, a break below 185.10 negates the bullish tone for a slide to expose the next intermediate support at 183.90/183.45 (also the 20-day moving average).Original Post