Jamie McGeever
8 min read
In This Article:
By Jamie McGeever
ORLANDO, Florida (Reuters) - TRADING DAY
Making sense of the forces driving global markets
By Jamie McGeever, Markets Columnist
I'm excited to announce that I'm now part of Reuters Open Interest (ROI), an essential new source for data-driven, expert commentary on market and economic trends. You can find ROI on the Reuters website, and you can follow us on LinkedIn and X.
The dollar's slide accelerated on Thursday, as more evidence of cooling U.S. price pressures weighed on Treasury yields and dragged the greenback to lows against a basket of major currencies not seen in more than three years.
In my column today I look ahead to next week's Fed meeting. With inflation cooling but tariffs yet to kick in, is Fed policy still in a "good place" as Chair Jerome Powell repeatedly said last month? More on that below, but first, a roundup of the main market moves.
If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today.
1. The dollar's crown is slipping, and fast 2. Watch out for dollar FX fall more than'de-dollarization': Mike Dolan 3. Demand destruction can help break China's rare earthschokehold: Andy Home 4. China eyes stronger cooperation with ECB amid globaltrade tensions 5. U.S. tariffs may have ended BOJ's rate-hike cycle,former policymaker says
Today's Key Market Moves
* The dollar index hits a three-year low of 97.60, and theeuro scales $1.16 for the first time since November 2021. * Treasury yields fall across the curve, especially the longend, after a solid 30-year auction. 30-year yield is down 7 bpsto 4.84%, on track for its biggest weekly fall since March. * Wall Street posts modest gains, with the main threeindices gaining 0.2-0.4%, led by tech. * Oracle is the biggest advancer, up 13% to record highsafter the cloud service provider raises its annual revenuegrowth forecast; Boeing is the biggest decliner, down almost 5%after a fatal Air India plane crash. * Precious metals rise strongly, again. Gold up nearly 1%to nudge $3,400/oz, platinum adds 3% to nudge $1,300/oz andbring gains in the last eight sessions to 25%.
Dollar despair deepens
The dollar grabbed the global market spotlight on Thursday, and once again, for the wrong reasons. If it's failing to get any support when U.S. bond yields are rising, it's getting hit even harder when they're falling. As was the case on Thursday.
After a string of recent soft consumer inflation prints, it was the turn of producer price inflation to cement the view that U.S. price pressures aren't as hot as economists have thought. Tariffs have yet to be fully felt, of course, but right now inflation across the board is pretty tame.
