Dollar Soars for Second Week as Yields Climb and Markets Price Hawkish Fed

The US dollar continued its upward trend for a second consecutive week as Treasury yields rose and markets priced in a hawkish Federal Reserve. With few major economic data releases scheduled, attention shifts to US durable goods orders for August and Canada's July budget balance.

Central bank communication remains active, with Fed officials Williams and Hammack set to speak alongside BoE Governor Bailey and ECB policymakers Buch and Vujcic. The Bank of Japan will also release its summary of opinions from its September meeting, while China's August industrial profits will be announced.

In the equities market, US stocks were choppy after the Trump-Xi meeting failed to yield any significant policy shifts. Higher oil prices and tighter rate expectations weighed against support from AI-related optimism, causing oil to slip in the Asian session.