Dollar Surges, Gold Plunges as Risk Appetite Sets the Tone for “Super Week”

Market Overview

“Super Week” kicked off with limited upside for U.S. equities, though chipmakers continued to prop up the S&P 500 and Nasdaq to fresh record highs. The S&P 500 managed a narrow late-session gain, securing a precarious six-day winning streak. The recently announced U.S.-EU trade agreement was viewed as favorable for the U.S., sending the dollar sharply higher. The U.S. Dollar Index jumped over 1% intraday—its biggest gain in more than two months—while the euro slumped over 1%, marking its largest two-month drop. Meanwhile, former President Trump intensified his threats of sanctions on Russia, driving oil prices higher. Brent crude rebounded to a two-week high, while WTI crude briefly surged 3%. Gold suffered a sharp selloff, falling over 1% intraday for a fourth consecutive decline.

Key Highlights

• U.S. Treasury Q3 Borrowing Forecast Tops $1 Trillion

• Newly released data show that following the implementation of Trumps large-scale tax cuts and spending packages—which lifted the federal debt ceiling—the U.S. Treasury is set to issue bonds aggressively this quarter. The Treasury announced that net marketable borrowing for July through September is now projected at $1.007 trillion. This marks an increase of more than $450 billion from the $554 billion forecast in April, representing a sharp upward revision of nearly 82%.

• Russia Sanctions Countdown

• President Trump appears to be losing patience with Russias slow progress in reaching a ceasefire agreement with Ukraine. He has significantly shortened the previously granted 50-day deadline for Moscow to finalize a deal. Trumps remarks fueled a sharp rally in crude oil futures on Monday. As U.S. equities pushed to fresh intraday highs before the open, WTI crude spiked to $67.06, up over 2.9% on the day.

Key Data to Watch

• 22:00 (GMT+8) – U.S. June JOLTs Job Openings (millions)