Asian Stocks Fall as Bond Yields Surge Ahead of Trump-Xi Summit 
Japanese Bank Stocks Surge as Bond Yields Fuel Rate Hike Bets 
Asian Currencies Mixed as Dollar Holds Near Two-Month High 
UK PM Burnham to Unveil Economic Vision at Labour Conference 
Fed Unveils Stablecoin Rules Under GENIUS Act 
Wall Street Ends Flat as Oil, Treasury Yields and Fed Jitters Rattle Markets 
Trump, Xi Focus on Trade and AI at White House Summit 
Soybean Futures Slip as Traders Await Trump-Xi Trade Signals 
Japanese Yen Rebounds as Trump Flags Currency Weakness 
China Agrees to Buy 20 Million Tons of U.S. Coal 
U.S. Dollar Hits Two-Month High as Oil, Treasury Yields Surge 
Dollar Holds Near Two-Month High as Yen Approaches 160 
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity 
Gold Prices Fall as Treasury Yields Rise on Fed Rate Hike Bets 
Australia Unemployment Hits Five-Year High Despite Strong Jobs Growth 
Canadian Dollar Faces Pressure as Fed-BoC Policy Gap Widens 
Oil Prices Jump 3% as Houthi Attack Revives Supply Fears 
Add as a preferred source on Google
The euro surged to its highest level since late 2021, climbing to $1.1589 before settling at $1.1568, as investors sought safe-haven assets amid rising geopolitical tensions and ongoing uncertainty over the U.S.-China trade truce. Concerns flared after U.S. President Donald Trump ordered some personnel to withdraw from the Middle East, warning it could become a "dangerous place" and reiterating his stance on preventing Iran from developing nuclear weapons.
Safe-haven demand drove gains for the Swiss franc, which rose 0.8% to 0.8138, and the Japanese yen, which climbed 0.6% to 143.70. Analysts pointed to the weakening U.S. dollar as a barometer of sentiment around the fragile trade environment. The U.S. Dollar Index dropped 0.35% to 98.108, hitting its lowest point since April 2022.
The euro also gained strength from a hawkish European Central Bank, signaling a potential pause in its easing cycle following inflation’s return to the 2% target. ECB official Isabel Schnabel attributed the euro’s strength to renewed investor confidence rather than rate differentials.
On trade, Trump hinted at extending a July 8 deadline for talks but confirmed the U.S. would issue “take-it-or-leave-it” offers to multiple countries, keeping tariff risks alive. Analysts warn these moves could keep pressure on U.S. inflation, especially with core PCE data still showing elevated price levels.
Meanwhile, the onshore Chinese yuan rose slightly to 7.1818, though future gains remain limited due to ongoing trade tensions. Barclays expects medium-term depreciation risks for the yuan.
Markets have now priced in two Federal Reserve rate cuts by year-end, with an 80% probability of a September move and full pricing of 100 basis points in cuts by late 2026.
