Trump, Xi Focus on Trade and AI at White House Summit 
China Agrees to Buy 20 Million Tons of U.S. Coal 
Dollar Holds Near Two-Month High as Yen Approaches 160 
US Comfortable With Canada Trade Standoff as Import Bans Loom 
Oil Prices Jump 3% as Houthi Attack Revives Supply Fears 
Fed Unveils Stablecoin Rules Under GENIUS Act 
Australia Unemployment Hits Five-Year High Despite Strong Jobs Growth 
Fed Unveils Stablecoin Rules Under GENIUS Act 
Japanese Bank Stocks Surge as Bond Yields Fuel Rate Hike Bets 
Oil Prices Fall on U.S.-Iran Hormuz Deal Hopes 
UK PM Burnham to Unveil Economic Vision at Labour Conference 
U.S. Dollar Hits Two-Month High as Oil, Treasury Yields Surge 
Asian Stocks Fall as Bond Yields Surge Ahead of Trump-Xi Summit 
Gold Holds Near $4,275 as Rising Treasury Yields Fuel Fed Rate Hike Bets 
Gold Prices Fall as Treasury Yields Rise on Fed Rate Hike Bets 
Asian Currencies Mixed as Dollar Holds Near Two-Month High 
Canadian Dollar Faces Pressure as Fed-BoC Policy Gap Widens 
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The U.S. dollar hovered near multi-year lows on Wednesday as markets weighed dovish remarks from Federal Reserve Chair Jerome Powell and concerns over the fiscal impact of President Donald Trump’s sweeping tax-and-spending bill. The dollar index, which tracks the greenback against six major currencies, edged up to 96.677 but remained close to Tuesday’s 16-month low of 96.373.
Powell, speaking at the European Central Bank’s forum in Sintra, Portugal, signaled a patient stance on interest rate cuts while leaving the door open for a potential reduction this month. Traders are now focused on Thursday’s U.S. non-farm payrolls report, following labor market resilience shown in the latest JOLTS data, which gave the dollar a modest lift.
The euro held firm at $1.1802 after peaking at $1.1829 overnight, its highest since September 2021. The Swiss franc remained strong, with the dollar trading at 0.7906 after hitting 0.7873—its weakest since January 2015. Sterling edged higher to $1.37435, nearing October 2021 levels.
Meanwhile, Trump’s recently passed Senate bill, projected to add $3.3 trillion to the national debt, raised concerns about ballooning U.S. fiscal deficits and bond issuance. Analysts say increased government spending could weigh further on Treasury markets and the dollar.
Additional pressure came from Trump’s criticism of Powell, including a handwritten note suggesting the U.S. interest rate should fall between Japan’s 0.5% and Denmark’s 1.75%, accusing the Fed Chair of being “too late” again.
Against the yen, the dollar inched up 0.1% to 143.59, recovering slightly from a 0.4% drop in the previous session.
Investors now await upcoming economic data to gauge the Fed’s next move and its impact on the dollar’s trajectory.
