AI Anxiety Shakes Markets, But Doesn’t Break Them; Dollar Rebound Might Fade
After days dominated by fears of an intensified tech rout and structural disruption from artificial intelligence, markets ended the week on a steadier footing. While volatility picked up meaningfully, Friday’s price action made clear that talk of an imminent trend reversal remains premature. Investors responded to midweek stress not...
Calmer Mood Returns as Markets Consolidate After Tech Selloff
Market sentiment appears to be stabilizing after this week’s sharp tech-led selloff. US equity futures are edging higher and cryptocurrencies are recovering modestly, suggesting the worst of the near-term liquidation pressure may have passed, at least for now. The calmer tone is feeding through into FX markets, where activity...
Equities, Cryptos and Metals Under Pressure as Risk-Off Builds, Dollar Finds Uneven Support
Risk aversion intensified overnight, with US equities posting broad-based losses. DOW and S&P 500 both closed more than 1.2% lower, while NASDAQ underperformed again, sliding nearly 1.6%. Notably, S&P 500’s break below near-term support zone around 6800 is technically significant. It suggests the tech-led selloff may be spilling over...
BoE Dovish Tilt Knocks Sterling; Tech Rout Continues
Sterling weakened sharply after the dovish read-through from the BoE’s rate hold. Although Bank Rate remained at 3.75%, the narrow 5–4 vote surprised markets and brought forward expectations for another cut. The close split highlighted a policy committee on a knife edge. With nearly half the MPC already favoring...
Deepening AI Anxiety Hits Sentiment; ECB and BoE in Focus
Risk-off sentiment intensified in US tech sector overnight, with another down day in the NASDAQ. The move reflected growing unease rather than a single catalyst, as investors continue to reassess the implications of artificial intelligence for earnings, valuations, and capital discipline. That weakness carried into Asia, where Japanese and...
Euro Shrugs Off Soft Inflation, Dollar Steady after ADP Miss
Euro is trading steadily today despite inflation data coming in weaker than expected. The muted market reaction suggests investors are comfortable looking through near-term softness, focusing instead on the broader policy and inflation backdrop. Indeed, recent data point to inflation likely undershooting the ECB’s own forecasts in the near...
Yen Slides Again as Election Bets Build
Yen selloff returned to focus in Asian trading today as investors positioned ahead of Japan’s snap election this weekend. continues to enjoy solid public support. Although recent polls show a modest dip in approval, her standing remains strong enough to anchor expectations of electoral success.
More importantly for markets, her...
FX Drifts as US Data Quiet and NFP Release Delayed
Forex markets are trading relatively steady as the US session gets underway, with no strong directional conviction emerging. Early risk-on momentum from Asia has faded, leaving major pairs consolidating rather than extending moves.
The initial lift in sentiment came from Asia following the announcement of a US–India trade deal, which...
Risk-On Asia and Hawkish RBA Propel Aussie Higher
Australian Dollar surged broadly in Asia session, drawing fresh strength from a hawkish RBA rate hike that reinforced expectations of further tightening later this year. The move gave the Aussie an extra tailwind on top of an already constructive regional backdrop.
Risk appetite in Asia has been firm, with the...
Dollar Rises as Crypto and Tech Show Strain, Aussie Awaits RBA Guidance
Dollar extended its rebound today, though upside momentum remains restrained. Price action suggests markets are still digesting recent shifts in policy expectations rather than embracing a full risk-off move. Attention remains on the implications of Kevin Warsh being lined up as the next chair of the Fed. While Fed...
Yen Slips as Takaichi Tones Down Intervention Rhetoric
Yen came under renewed pressure today after comments over the weekend from Japanese Prime Minister Sanae Takaichi suggested a softer stance on currency weakness. The shift in tone has been interpreted as reducing the near-term threat of official intervention, reopening the door for Yen sellers.
In a campaign speech on...
A Credible Fed Choice Tames Tail Risks, Not the Cycle
Last week delivered yet another reminder that volatility has become a feature this year, rather than an exception. Sudden repricing episodes continue to emerge, often driven by political and institutional developments rather than changes in economic fundamentals.
The latest bout of turbulence was triggered by market repricing around the nomination...
Warsh Pick Calms Fed Fears But No Dollar Turnaround
US President Donald Trump today finally named former Fed Governor Kevin Warsh to succeed Jerome Powell as Fed Chair, bringing an end to a prolonged and unusually turbulent succession process. Trump praised Warsh publicly, calling him a future “great” Fed chairman and signaling confidence in his leadership.
The announcement removed...
Dollar Consolidates as Warsh Hints and Shutdown Deal Calm Nerves
Dollar is consolidating within a narrow range today, reflecting a temporary balance between supportive near-term developments and persistent longer-term headwinds. Volatility has subsided, but price action lacks the conviction typical of a durable turnaround.
A sharp pullback in precious metals has played a key role in easing pressure on the...
Dollar Stays Heavy as Trump Renews Attacks on Fed Powell, Oil Surges
Trading in the FX markets has turned notably listless, with Dollar continuing to drift lower but without broad-based follow-through. Political pressure, however, returned swiftly. US President Donald Trump again lashed out at Fed Chair Jerome Powell, criticizing the decision to keep rates unchanged and reviving his long-running argument that...
Fed Non-Event Gives Way to Higher Yields and Record Metals
Market reaction to the Fed’s widely expected rate hold was muted overnight, with equities struggling to find direction. S&P 500 briefly pushed above the 7,000 mark, but the move lacked follow-through. By the close, all three major US indexes finished near flat.
Away from equities, two developments stood out. US...
Bessent’s Strong Dollar Talk Fails to Convince as Recovery Lacks Conviction
Dollar found modest support in early US trading, managing a mild recovery as markets position cautiously ahead of the Federal Reserve’s rate decision. The move looked more like a pause in selling than a decisive shift in sentiment, with traders reluctant to press positions before policy clarity.
Some stabilization came...
Dollar Breaches 1.2 Against Euro, Selloff Deepens as Trump Welcomes Weakness
Dollar’s selloff extended through the week, only managing a brief pause after slipping through the key psychological level of 1.2 against Euro briefly. While the pace of decline has slowed, there is little sign of a meaningful recovery taking shape. The bounce has so far been shallow. And, Dollar...
Dollar Reprieve Fades as Risk Aversion Reasserts, Swiss Franc Jumps
The brief reprieve for Dollar has already faded. As markets move into the US session, the greenback is once again under broad selling pressure, undoing the tentative stabilization seen earlier and returning to a defensive footing. There is little in the way of fresh fundamental catalysts today. Instead, the...
Dollar Consolidates as Geopolitics Take a Breather
The forex market has finally slipped into a period of stabilization, with Dollar shifting into consolidation after several volatile sessions. All major pairs and crosses are trading within yesterday’s ranges, signaling a collective pause. Part of the calm reflects a temporary cooling in geopolitical and trade-war rhetoric. Recent fears...