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Global economic update: Summer 2025 highlights
Financial markets have generally responded positively to announced trade deals, improving "risk-on" sentiment. The USD index (DXY) has strengthened by 2.0% since early July. Currently, the USD trades at 1.157 against the euro. While government bond yields have risen in Europe and Sweden, they have fallen in the United States, particularly following the labor market figures published on 1 August. Yield curves have steepened in Japan and the US but flattened in Sweden and Europe. Since July 1, the net changes for 10-year government bonds (and 2-year bonds) are +14 (+18) basis points for Sweden, +3 (+7) basis points for ... (full story)