The new trading week is starting with a more positive tone in the broader markets. U.S. stock futures are sharply higher, Treasury yields are lower and Bitcoin is surging more than 4%. Meanwhile, crude oil is down nearly 3% as traders remove some of the geopolitical risk premium built into the market.The U.S. dollar is mixed. It is little changed against the EUR and CHF, higher against the JPY, GBP and CAD, and lower against the AUD and NZD.The AUD is the strongest of the major currencies, while the JPY is the weakest.Trump–Xi meeting in focus this weekChinese President Xi Jinping will visit the United States from Wednesday through Friday, with the main meeting with President Donald Trump scheduled for Thursday at the White House.Trade will be a major focus. Markets will be watching for progress on extending the tariff truce, lowering tariffs on selected nonstrategic goods and resolving disputes involving U.S. agricultural exports and China’s supply of rare-earth minerals.Artificial intelligence, technology restrictions, Taiwan and the Middle East are also expected to be discussed. Ahead of the summit, Treasury Secretary Scott Bessent met with Chinese Vice Premier He Lifeng over the weekend to lay the groundwork for the talks.For the markets, any signs of reduced trade tensions could support stocks, the AUD, NZD and other risk-sensitive assets. A lack of progress—or renewed tariff threats—could quickly reverse that sentimentWhat happened in the Middle East over the weekend?The situation remains tense, but the oil market is focusing more on resilient supply and the possibility of diplomatic progress.The Iran-backed Houthis launched missile and drone attacks against sensitive targets in Riyadh and an Aramco facility in Yanbu. The attacks disrupted Saudi Arabia’s East-West pipeline, which carries oil to the Red Sea and allows Saudi exports to avoid the Strait of Hormuz.However, Saudi Arabia has been able to redirect more oil through the Strait of Hormuz. Saudi exports through that route reportedly increased to around 2.9 million barrels per day. That has helped ease immediate concerns about a major loss of supply.There are also renewed diplomatic hopes. President Trump has expressed a willingness to meet Iranian President Masoud Pezeshkian during the United Nations General Assembly, while Iran has communicated conditions for restarting negotiations. China has also urged Iran to restrain the Houthis following the attacks on Saudi Arabia.The combination of continued oil flows and the possibility of diplomacy is helping crude oil move lower—even though the broader geopolitical threat has not gone away.WTI (November)crude is trading at $93.51, down $2.57 or 2.67%.For traders, this is another reminder to trade the price action and not simply the headline. The weekend news remained threatening, but the market was unable to sustain the geopolitical premium because the actual flow of oil remained stronger than feared.Foreign-exchange snapshotThe trading ranges remain relatively contained:EURUSD: 1.1472 to 1.1486 — 14 pipsUSDJPY: 156.59 to 157.30 — 71 pipsGBPUSD: 1.3369 to 1.3393 — 24 pipsUSDCHF: 0.8217 to 0.8238 — 21 pipsUSDCAD: 1.3984 to 1.4023 — 39 pipsAUDUSD: 0.7118 to 0.7135 — 17 pipsNZDUSD: 0.5714 to 0.5732 — 18 pipsThe EURUSD and GBPUSD ranges are particularly narrow. That gives both pairs room to extend if the North American session produces a technical break or a fresh fundamental catalyst.U.S. stock-index futures like interest rates and oil lowerThe fall in oil, lower Treasury yields and hopes for Middle East diplomacy are helping support risk sentiment. The futures are implying (8:10 AM ET): Dow industrial average futures: +457 pointsS&P 500 futures: +56.75 pointsNasdaq 100 futures: +332 pointsU.S. Treasury yields are lower as they follow oil to the downsideTreasury yields are lower across the curve:2-year: 4.7161%, down 2.7 basis points5-year: 4.8108%, down 4.1 basis points10-year: 4.9514%, down 4.5 basis points30-year: 5.2899%, down 3.7 basis pointsThe decline in yields is another supportive influence for stocks. However, the 10-year remains close to the psychologically important 5.00% level, so that market will remain an important barometer for risk sentiment.Bitcoin pushes higher to the highest level since January 28Bitcoin is trading near $84,785, up $3,606 or 4.44%. See my post from Friday: Bitcoin technicals: The price breaks above 100/200 hour MAs and buyers overwhelm the sellers. The move has taken Bitcoin to its highest level in eight months. Improved risk appetite, lower oil prices and a more favorable U.S. regulatory backdrop are helping the move. Reports that the SEC introduced a five-year exemption for platforms trading tokenized stocks and securities have added to the positive tone.Bitcoin buyers are making a stronger play, but after such a sharp move, holding the breakout levels will now be important. A move higher is bullish; staying higher is what confirms that the buyers remain in control.Other marketsGold: $4,354.26, down $23.03 or 0.53%Silver: $66.18, down 0.06%Copper: $6.7880, up 1.44%WTI crude oil: $93.51, down $2.57 or 2.67%Gold is moving lower despite the decline in Treasury yields. The improved risk tone and reduced demand for geopolitical protection are outweighing the support normally associated with lower rates.Austan Goolsbee returns to the speaking circuitChicago Fed President Austan Goolsbee, a 2027 FOMC voter, restarted his public speaking schedule following last week’s Federal Reserve meeting.Goolsbee said the Fed must have the courage to fight inflation and wants convincing evidence that inflation is returning to the 2% target. He added that the Fed currently does not have an employment problem but does have an inflation problem.His key distinction centered on the source of inflation. If price pressures are being driven by temporary supply shocks, the Fed may have some flexibility. However, if strong demand is contributing to inflation, Goolsbee said policymakers would need to take that into account.The comments lean hawkish. Although he remains optimistic that inflation can return to 2%, he is not ready to declare victory or signal that rates should move lower without clearer evidence.Morning videoIn the morning video above, I take a look at the three major currency pairs—EURUSD, USDJPY and GBPUSD—from a technical perspective. For each pair, I outline the bias, the risk-defining levels and the targets that would give either the buyers or sellers more control. This article was written by Greg Michalowski at investinglive.com.