Fed’s Hammack Says Bond Yield Surge Is Not Driven by Inflation Fears 
Mexico-US Trade Talks Delayed to October as Tariff Negotiations Continue 
Germany’s 2026 Growth Outlook Strengthens on Fiscal Spending 
Fed Unveils Stablecoin Rules Under GENIUS Act 
Asian Currencies Mixed as Dollar Holds Near Two-Month High 
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity 
Asian Stocks Fall as Surging Bond Yields Rattle Markets 
Oil Prices Jump 3% as Houthi Attack Revives Supply Fears 
Fed Unveils Stablecoin Rules Under GENIUS Act 
US 10-Year Treasury Yield at 6% Emerges as New Market Risk Threshold 
Canadian Dollar Faces Pressure as Fed-BoC Policy Gap Widens 
Trump, Xi Focus on Trade and AI at White House Summit 
Gold Holds Near $4,275 as Rising Treasury Yields Fuel Fed Rate Hike Bets 
Dollar Holds Near Two-Month High as Yen Approaches 160 
Australia Unemployment Hits Five-Year High Despite Strong Jobs Growth 
Soybean Futures Slip as Traders Await Trump-Xi Trade Signals 
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The Canadian dollar and Mexican peso remain under pressure as U.S. President Donald Trump confirmed that 25% tariffs on imports from Canada and Mexico will take effect. The loonie stood at $1.4496, nearing a one-month low, while the peso dipped 0.2% to 20.7390 per dollar, its weakest since early February.
Trump justified the tariffs by citing fentanyl flows into the U.S., dismissing the possibility of a last-minute trade deal. The new tariffs, affecting over $900 billion in annual imports, could disrupt the North American economy, with corporate leaders and economists warning of inflationary effects. Analysts expect further trade restrictions on Europe and beyond, compounding global economic risks.
RBC’s Andrzej Skiba predicts the tariffs will limit the Federal Reserve’s ability to cut interest rates, increasing volatility in fixed-income assets. The U.S. dollar index remained at 106.49 after a recent drop, with concerns rising over weakening consumer spending and potential economic slowdowns.
Meanwhile, the euro held firm at $1.0482 following a sharp rebound, as traders watch for developments in Ukraine and the European Central Bank’s policy decision. The ECB is expected to implement another 25 basis point rate cut amid persistent inflation concerns.
Sterling hovered at $1.26995, while the yen strengthened to 148.75 per dollar. Trump also criticized Japan and China for currency devaluation, adding uncertainty to global markets. The Australian dollar slipped 0.19% to $0.6213, and the New Zealand dollar fell 0.12% to $0.5610.
As markets brace for further trade tensions, investors remain cautious about the broader economic implications of Trump's aggressive tariff policies.
