Dollar Hits One-Month High as Hawkish Fed Outlook Boosts Greenback 
Yen Near 40-Year Lows Despite BOJ Rate Hike, Markets Brace for Possible Intervention 
German Auto Suppliers Turn Bearish as Investment and Jobs Shift Overseas 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
Italy’s Economy Outpaces Eurozone Peers as Investment Spending Fuels Growth 
US Stock Futures Slip After Wall Street Rally Fueled by US-Iran Deal and Chipmaker Surge 
Oil Prices Drop as U.S.-Iran Peace Deal Eases Supply Concerns 
Japan Inflation Stays Below BOJ Target Despite Rate Hike and Rising Energy Cost Risks 
US Stock Futures Jump on Reports of Preliminary US-Iran Peace Deal Despite Fed’s Hawkish Outlook 
Oil Prices Slide as U.S.-Iran Deal and Hormuz Reopening Ease Supply Concerns 
Canada Imposes 10% Tariff on Canned Vegetable Imports to Protect Domestic Industry 
Trump Questions USMCA Renewal as Trade Talks Continue 
Oil Prices Steady as U.S.-Iran Truce Uncertainty and Middle East Tensions Keep Markets on Edge 
Dollar Surges After Fed Holds Rates Steady, Signals Potential Tightening Ahead 
Asian Stocks Advance as Nikkei Nears Record High Ahead of Fed Decision 
ASX Proposes New Share Dilution Limits for Public Takeovers 
The U.S. dollar strengthened on Thursday as rising Treasury yields fueled expectations that the Federal Reserve could raise interest rates later this year. Investors also closely monitored the high-profile summit between U.S. President Donald Trump and Chinese President Xi Jinping, with global markets reacting to developments in U.S.-China trade relations.
During the two-day meeting, Xi acknowledged progress in trade negotiations but warned that disagreements over Taiwan could negatively impact ties between the world’s two largest economies. Trump described the gathering as potentially the “biggest summit ever,” adding to market anticipation surrounding possible economic agreements.
China’s yuan remained near its strongest levels in more than three years, with the onshore yuan holding close to 6.7840 per dollar and the offshore yuan touching 6.7817. Analysts at Barclays noted that a stable yuan could support smoother discussions between Washington and Beijing, although Chinese authorities may resist rapid currency appreciation through intervention measures.
In the broader forex market, the euro traded near $1.1714 and remained on track for its biggest weekly drop in two months. The British pound hovered around $1.3524 as political uncertainty in the United Kingdom pressured sterling.
The U.S. Dollar Index climbed to 98.48, gaining over 0.6% for the week. Meanwhile, the Japanese yen found support after Bank of Japan board member Kazuyuki Masu suggested that interest rates should rise if economic conditions remain stable.
Recent U.S. inflation data has significantly boosted the dollar. Producer prices posted their sharpest increase in four years in April, while consumer inflation accelerated to its fastest annual pace in three years. The data strengthened market expectations for tighter monetary policy under incoming Fed Chair Kevin Warsh.
According to CME FedWatch data, markets now see a 31.8% probability of a Fed rate hike in December, nearly double last week’s expectations. Rising inflation concerns also pushed Treasury yields higher, with the 10-year yield nearing one-year highs.
Elsewhere, the Australian dollar remained strong near a four-year peak due to hawkish domestic rate expectations, while the New Zealand dollar edged slightly lower.
