Key Takeaways
- The Euro (EUR) is facing its worst week since 2022, primarily due to ongoing issues with the Europe-US trade agreement, which has led to a significant depreciation against the US Dollar (USD).
- The Dollar/Swiss Franc (USD/CHF) currency pair is projected to increase by 2.7% this week, marking its largest weekly rise since June 2021, indicating a strengthening dollar.
- Morgan Stanley (MS) has raised its price target for Apple Inc. (AAPL) to $240 from $235, citing strong App Store growth and long-term value potential.
- Europe is preparing for an upcoming heatwave following a cooler start to August, with temperatures expected to rise significantly across the continent.
- The Head of the Ukrainian Presidential Office has held discussions with top advisors from the UK, France, Germany, and Italy, with Ukraine's partners confirming "positive signals" from the White House regarding decisive action.
Europe is bracing for a significant shift in weather patterns, with an upcoming heatwave expected to bring higher temperatures after a relatively cooler start to August. This follows previous heatwaves in June and July 2025 that saw temperatures reach up to 42°C (107.6°F) in some regions and led to an estimated 2,300 heat-related deaths across 12 analyzed cities.
In currency markets, the Euro (EUR) is experiencing its most challenging week since 2022, largely attributable to persistent issues surrounding the Europe-US trade agreement. The agreement, which includes a 15% import tariff on most European goods into the United States, has received mixed reviews across Europe, with some officials expressing disappointment despite avoiding a higher 30% rate that had been threatened. This trade friction is contributing to the euro's weakness against the US Dollar (USD).
Conversely, the Dollar/Swiss Franc (USD/CHF) currency pair is set for a substantial increase of 2.7% this week, marking its most significant weekly gain since June 2021. This movement underscores a broader strengthening of the US dollar in the global currency landscape.
In corporate news, Morgan Stanley (MS) has demonstrated continued confidence in Apple Inc. (AAPL), raising its target price for the tech giant to $240 from $235. This upward revision is supported by strong performance, including a 10% year-over-year growth in the U.S. App Store in May, exceeding Morgan Stanley's forecasts. Analysts believe Apple's strong financial health and market position will help it reach this new target over the next 12 months, despite potential risks from App Store bypasses and regulatory challenges.
However, a cautionary note comes from Bank of America’s (BAC) Michael Hartnett, who warns that the rally in US big tech stocks appears stretched. This sentiment suggests potential overvaluation in the sector, prompting investors to exercise caution.
Meanwhile, on the geopolitical front, the Head of the Ukrainian Presidential Office has engaged in crucial discussions with top advisors from the United Kingdom, France, Germany, and Italy. These meetings have reportedly yielded "positive signals" from the White House regarding decisive action, indicating ongoing international support for Ukraine.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.