The US Dollar Extends Its Winning Streak to Four Weeks as Global Currency Markets Remain Divided
đ” During October 5â9, the US Dollar Index (DXY) rose for a fourth consecutive week, closing around 102.2 after approaching 102.5, its highest level since April 2025. The dollar was supported by elevated US Treasury yields, interest rate differentials, and safe-haven demand amid geopolitical uncertainty.
đȘđș EUR/USD declined for a fifth consecutive week, briefly approaching 1.116, its lowest level in approximately 17 months. The euro faced pressure from dollar strength and fiscal and political concerns in France. Meanwhile, USD/JPY remained near 158, with yield differentials continuing to weigh on the yen.
đ Commodity-linked currencies showed clear divergence. The Australian dollar remained relatively resilient, supported by domestic economic data and RBA policy expectations. In contrast, the Canadian dollar weakened after Canada lost 68,000 jobs in September, highlighting the growing importance of country-specific economic conditions.
đŠ FOMC minutes indicated that most Fed officials still considered another rate increase before year-end appropriate. However, weak US employment data reduced expectations for an October hike. Easing Treasury yields and oil prices toward the end of the week also helped limit further dollar gains.
đ Looking ahead, attention turns to the September US CPI report, scheduled for October 14. Higher-than-expected inflation could reinforce dollar strength, while softer figures may support a recovery in other currencies. Overall, the dollar retains a relative advantage, although further gains will depend heavily on economic data and monetary policy expectations.
#Forex $PHA
đ” During October 5â9, the US Dollar Index (DXY) rose for a fourth consecutive week, closing around 102.2 after approaching 102.5, its highest level since April 2025. The dollar was supported by elevated US Treasury yields, interest rate differentials, and safe-haven demand amid geopolitical uncertainty.
đȘđș EUR/USD declined for a fifth consecutive week, briefly approaching 1.116, its lowest level in approximately 17 months. The euro faced pressure from dollar strength and fiscal and political concerns in France. Meanwhile, USD/JPY remained near 158, with yield differentials continuing to weigh on the yen.
đ Commodity-linked currencies showed clear divergence. The Australian dollar remained relatively resilient, supported by domestic economic data and RBA policy expectations. In contrast, the Canadian dollar weakened after Canada lost 68,000 jobs in September, highlighting the growing importance of country-specific economic conditions.
đŠ FOMC minutes indicated that most Fed officials still considered another rate increase before year-end appropriate. However, weak US employment data reduced expectations for an October hike. Easing Treasury yields and oil prices toward the end of the week also helped limit further dollar gains.
đ Looking ahead, attention turns to the September US CPI report, scheduled for October 14. Higher-than-expected inflation could reinforce dollar strength, while softer figures may support a recovery in other currencies. Overall, the dollar retains a relative advantage, although further gains will depend heavily on economic data and monetary policy expectations.
#Forex $PHA