USDX Rebounds; Banks Report Earnings; Bitcoin New ATH

The EUR/USD pair registered its first weekly loss in three weeks, ending Friday’s session at 1.1688—down 0.12% on the day and more than 0.70% on the week. The pair’s drop reflects growing bearish momentum as the U.S. dollar surged, marking its strongest weekly performance since March amid a broad risk-off environment.

The dollar’s rally came amid heightened geopolitical and trade tensions sparked by President Donald Trump, who signaled plans to expand tariffs. Reports indicate that Trump is preparing to send a formal letter to the European Union as part of his intention to impose blanket tariffs—including on copper exports.

Risk appetite deteriorated following reports of Trump’s aggressive tariff agenda. In addition to targeting the EU, he enacted 35% tariffs on Canadian goods and is reportedly considering across-the-board tariffs of 15% to 20% on other trading partners and commodities. This development raised concerns about a renewed escalation of global trade tensions.

In Europe, European Central Bank (ECB) officials offered contrasting views. ECB Executive Board member Isabel Schnabel maintained a hawkish stance, stating that the bar for additional rate cuts remains high and that she sees no current evidence of inflation drifting away from the ECB’s 2% target.

Bitcoin soared to a new all-time high above $122,000 during Asian trading on Monday, driven by mounting institutional interest and anticipation surrounding a key regulatory week in Washington.

The latest leg higher in Bitcoin was sparked by Japanese firm Metaplanet Inc.  which announced the acquisition of an additional 797 Bitcoins, boosting its total holdings to 16,352 BTC. The Tokyo-listed company now ranks as the fifth-largest corporate holder of Bitcoin, further underscoring the trend of institutional adoption.

Bitcoin’s recent momentum follows weeks of robust spot ETF inflows in the U.S., with asset management giants like BlackRock and Fidelity deepening their exposure to digital assets. Analysts noted that after peaking in late May and experiencing a mild pullback, Bitcoin appears to have exited its corrective phase. They highlighted improving momentum indicators and a rebound in July trading volume, which is on track to match or exceed May’s levels following a quiet June.

Investor optimism is also being fueled by “Crypto Week,” which kicks off Monday in Washington. The U.S. House of Representatives is set to deliberate on a series of high-profile crypto-related bills, including the Genius Act, Clarity Act, and Anti-CBDC Surveillance State Act.

If enacted, these bills could establish long-awaited regulatory clarity around stablecoins, digital asset custody, and the broader digital finance landscape—potentially ushering in a more supportive policy environment for crypto innovation.

Gold prices climbed sharply on Friday, gaining close to 1% as market sentiment turned risk-averse amid escalating trade tensions triggered by U.S. President Donald Trump.

The rally comes in response to fresh tariff announcements that rattled global markets. On Thursday, Trump imposed 35% tariffs on Canadian imports, while preserving exemptions for goods compliant with the USMCA trade agreement. In a broader warning, the former president signaled plans to introduce blanket tariffs of 15% to 20% on major U.S. trading partners and levies of up to 50% on copper and Brazilian exports.

Gold’s advance was notable as it occurred alongside a strengthening U.S. dollar, which typically exerts downward pressure on bullion.

In an otherwise quiet week for U.S. economic data, attention turned to central bank commentary. Chicago Federal Reserve President Austan Goolsbee pushed back against suggestions that the Fed should ease monetary policy to lower government borrowing costs. He emphasized the Fed’s dual mandate of price stability and employment, warning that recent trade disruptions have introduced new uncertainty into the economic outlook.

Looking ahead, markets will focus on a packed U.S. data slate next week, including the June Consumer Price Index (CPI), Retail Sales, and Initial Jobless Claims.

This week will also feature multiple Federal Reserve speakers ahead of the pre-meeting blackout period, which begins on July 19.

U.S. equities ended lower on Friday, retreating from record highs as renewed trade tensions fueled by President Donald Trump’s latest tariff escalations weighed on investor sentiment.

Trump reignited trade policy uncertainty late Thursday by announcing a 35% tariff on Canadian imports set to take effect next month. He also floated plans to apply blanket tariffs of 15% to 20% on most U.S. trading partners, adding to an earlier 50% tariff on Brazilian goods. Markets were further unsettled by the prospect of additional duties on European Union exports, as the bloc braces for formal notice from Washington.

While major indexes slipped, chip giant Nvidia bucked the trend, rising 0.5% to a new all-time high and pushing its market capitalization to $4.02 trillion.

Meanwhile, Meta Platforms slid 1.3% after reports suggested the company is unlikely to make additional concessions on its pay-or-consent model, increasing the likelihood of new antitrust action from the European Union.

Investors are now turning their attention to the second-quarter earnings season, with reports from JPMorgan Chase, Netflix, and Johnson & Johnson among the highlights this week.