Canadian Dollar Faces Pressure as Fed-BoC Policy Gap Widens 
Mexico-US Trade Talks Delayed to October as Tariff Negotiations Continue 
U.S. Treasury Yields Surge as 30-Year Hits 22-Year High 
Asian Currencies Mixed as Dollar Holds Near Two-Month High 
Asian Stocks Fall as Bond Yields Surge Ahead of Trump-Xi Summit 
Fed’s Hammack Says Bond Yield Surge Is Not Driven by Inflation Fears 
US Stock Futures Fall as Treasury Yields Surge Ahead of Trump-Xi Summit 
UK PM Burnham to Unveil Economic Vision at Labour Conference 
U.S. Dollar Hits Two-Month High as Oil, Treasury Yields Surge 
European Stocks Fall as Bond Yields and Geopolitical Risks Weigh 
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity 
Trump, Xi Focus on Trade and AI at White House Summit 
Asian Stocks Fall as Surging Bond Yields Rattle Markets 
Australia Unemployment Hits Five-Year High Despite Strong Jobs Growth 
Oil Prices Jump 3% as Houthi Attack Revives Supply Fears 
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The U.S. dollar slumped to its lowest level against the euro since September 2021, as President Trump’s $3.3 trillion tax-and-spending bill stirred fiscal concerns and weighed on investor sentiment. The euro surged to $1.1808, marking a near four-year high and its strongest first-half performance in history with a 13.8% gain, according to LSEG data.
Market focus is shifting to the Federal Reserve’s next move, with investors now pricing in 67 basis points of rate cuts this year. Goldman Sachs expects three 25-basis-point reductions in 2025, citing muted tariff effects and softening labor data. Traders are eyeing Thursday’s nonfarm payrolls report, which is forecast to show 110,000 new jobs in June and a rise in unemployment to 4.3%.
The dollar index fell to 96.612, its weakest since February 2022, as investors bet on a more dovish Fed. The yen strengthened to 143.77 per dollar, gaining 9% year-to-date, while sterling held firm at $1.3739. Concerns about central bank independence have grown amid Trump’s repeated attacks on Fed Chair Jerome Powell and pressure for aggressive rate cuts. Trump even sent Powell a note suggesting U.S. rates should mirror Japan or Denmark’s ultra-low levels.
Adding to the pressure, foreign demand for U.S. Treasuries has weakened, challenging the dollar’s long-standing position as the world’s reserve currency. The greenback has fallen over 10% in the first half of 2025—its steepest decline since the early 1970s.
Meanwhile, global markets remain cautious ahead of the July 9 tariff deadline. Trump has expressed frustration with Japan over stalled trade talks, while Treasury Secretary Scott Bessent warned that higher tariffs could still be imposed despite ongoing negotiations.
