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Sterling hit three-week highs above 1.3400 as dollar eased; Fed minutes, politics, and hawkish BoE supported.
Energy shock drives hawkish ECB repricing; gas surge lifts inflation fears, yields jump, euro rises, equities risk.
EUR/USD stays resilient on ECB hike bets, but Fed strength may drag euro below 1.14 soon.
China CPI cools to 1.0% as PPI rises 4.1%, boosting rate-cut bets and pressuring commodities, AUD.
China’s June PPI fell 4.1% yearly, easing volatility fears; deflation persists, enabling steady PBoC policy strategies.
TD Securities warns China’s fiscal stance is tightening; limited H2 2026 support unless growth nears 4.0–4.2%.
May US consumer credit fell $0.18bn versus $17.1bn expected, signaling slowdown, prompting defensive, Fed-cut trades.
Fed minutes reveal hawkish division; inflation stays high as markets price renewed hikes, boosting dollar and yields.
US 10-year auction yield rose to 4.58%, signaling higher borrowing costs, pressuring growth stocks, raising volatility.
Pound edged up as Iran-Hormuz tensions lifted oil and dollar; focus shifts to Fed minutes, UK politics.
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