Trouble is brewing in Europe, where the euro just hit its lowest level against the dollar since 2002. Traders are gauging the amount of hiking the ECB will be able to pull off, given growing fears of a recession. That would translate into a tougher time matching U.S. interest rate hikes, on top of risk-averse investors that continue to pile into the safe-haven greenback (the dollar is up 9% vs. the euro since the start of the year). On the geopolitical front, Russia next week will shut down the Nord Stream 1 pipeline for summer maintenance activities, but many regulators and analysts fear the EU's biggest piece of gas import infrastructure won't be turned back on.
Chinese tariff relief appears to be back on the table at the White House as the Biden administration continues to confront red-hot inflation readings. The Biden administration has been divided over the matter, with Treasury Secretary Janet Yellen calling for the reduction of "unnecessary burdens," and the USTR's Katherine Tai and NSA's Jake Sullivan viewing tariffs as economic leverage to get concessions out of Beijing
Speaking of inflation, another Twitter feud erupted over the weekend between the White House and Jeff Bezos, who is increasingly becoming vocal on social media. After President Biden criticized the energy industry, Bezos replied: It's either straight ahead misdirection or a deep misunderstanding of basic market dynamics