Dollar Falls Across the Board as Markets Scale Back Fed Hike Expectations Beyond December
Dollar weakened against all seven major currencies on Friday as markets scaled back expectations for Fed tightening beyond the anticipated December rate increase. Dollar Index fell from around 102.30 on Thursday afternoon to 101.69 by Friday’s European session, a decline of approximately 0.6%.
Gold and Silver Fall Despite Falling Yields — Is Position-Cutting Driving the Sell-Off?
Gold and Silver kept falling Friday even as US Treasury yields and the Dollar both declined—a break from the usual macro playbook. With tech stocks pressured by AI-spending concerns and crypto unsettled by the Binance breach, position-cutting across volatile assets is a plausible explanation, though not yet a confirmed one. Gold's 3,942.71 and Silver's $50 level are the next tests.
AI Spending Shock and Binance Hack Pressure Nasdaq, Nikkei and Bitcoin — Bigger Correction Ahead?
Two unrelated shocks converged on speculative assets: disappointing AI capex returns sent Alphabet down 12.64% and dragged Nasdaq, Nikkei and Asian semiconductors lower, while a ~$6.3B Binance security breach pushed Bitcoin toward $77,000. A falling Treasury yield hints at mild spillover, but broader equity performance stops short of confirming a generalized risk-off move—Nasdaq's 25,802.96, Nikkei's 61,462.61 and Bitcoin's $75,000–$76,000 zone are the levels that will decide if it deepens.
Euro Breaks Lower on ECB Caution and Lagarde Exit, as US Data and AI Sell-Off Fail to Move Rates
Euro fell against most major currencies on Thursday as the ECB’s cautious hold at 2.50% and President Christine Lagarde’s announcement of an early departure coincided with declining Eurozone bond yields. EUR/GBP broke below last week’s low, although EUR/USD and EUR/CHF have yet to confirm a broader breakdown.
