US Treasury Sec. Yellen: Banking system has stabilized in past few week

Matías Salord FXStreet

US Treasury Secretary Janet Yellen said on Friday that the US banking system has stabilized during the last few weeks. She added they continue to be vigilant and monitor conditions closely. She spoke at the Financial Stability Oversight Council Meeting, which will vote on two proposals: a framework for financial stability risk identification, assessment, and response; and a interpretive guidance on nonbank financial company designations.

Key quotes:

“Last month, the government took necessary actions to decisively manage the fallout from the failure of two regional banking institutions. Our goal was to mitigate the serious risk of contagion and protect the broader banking system and economy. The situation has stabilized in the past few weeks. And our banking system remains sound, with strong capital and liquidity positions. Of course, we continue to be vigilant and monitor conditions closely.”

“Still, these developments have reminded many of the fear and uncertainty that can accompany financial disruptions. For all in this room, I am certain that the developments underscored the importance of our work on financial stability: to continue to improve the resilience of a financial system that can support the economy through both good and bad times.”

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

GBP/USD extends losses toward 1.3200 after weak UK PMI data

GBP/USD loses further ground toward 1.3200 in the European session on Tuesday. Political uncertainty in the United Kingdom weighs on the British Pound, alongside weak business PMI data for June. Meanwhile, the US Dollar capitalizes on the risk-off mood and hawkish Fed bets ahead of the US PMI release.

EUR/USD stays weak below 1.1450 after German, EU PMI data

EUR/USD struggles to stage a rebound and trades below 1.1450 in the European session on Tuesday, after the data from Germany showed that the Composite PMI declined to 48 in June from 48.8 May, while that from the Eurozone rose to 49.5. Meanwhile, the US Dollar holds the upper hand against the Euro amid risk-off sentiment and a hawkish Fed outlook, leaving the pair on the defensive. Traders now await the US PMI data.

Gold drops to nearly two-week low, seems vulnerable amid Fed hike bets, bullish USD

Gold adds to its Asian session losses, and drops to a nearly two-week low, around the $4,115 region in the last hour amid a bullish US Dollar. Despite positive signals from US-Iran peace talks, widespread skepticism remains toward a final deal. This helps the USD in preserving its recent strong gains to the highest level since May 2025.

Bears cap Solana below $75 as ETF, retail demand wanes

Solana edges below $72 risking a third consecutive day of losses that could erase the 5% gains from Friday. SOL-focused Exchange Traded Funds reflect muted demand from institutional investors following a minor recovery last week. Meanwhile, retail trading activity hints at a bearish positional buildup.

US S&P Global PMI expected to show steady business growth in June

S&P Global will release the June flash Purchasing Managers' Indices for most major economies, with the United States data scheduled on Tuesday. These surveys of top private-sector executives are seen as an early indicator of the country’s economic health.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.