Markets Eye U.S. Data as Dollar Weakens (02.10.2026)
The dollar index remained below 97 on Tuesday as fears of softer foreign demand for US assets, reports of Chinese banks cutting Treasury holdings, expectations of delayed US jobs and inflation data, and a firmer yen on intervention talk weighed on the greenback.
The euro extended gains early this week, breaking above the $1.19 mark against the US dollar as global currency dynamics shifted. The move comes amid renewed dollar weakness, particularly against the yen, following Japan’s political developments. Meanwhile, the European Central Bank maintains a steady stance, expressing confidence in reaching its inflation target. Traders are now turning attention to upcoming U.S. employment and inflation figures, which may shape expectations for future Fed decisions.
Reports that Chinese authorities encouraged banks to trim U.S. Treasury exposure added pressure, while delayed U.S. jobs and inflation data later this week are set to shape expectations around the Federal Reserve.
Wall Street futures were steady after a strong start to the week that lifted the Dow to a fresh record. The S&P 500 and Nasdaq held their gains, driven by technology shares as concerns around AI spending eased.
Equities pushed higher in Asia, tracking the rebound in U.S. tech. The MSCI Asia Pacific Index rose 1.3%, with sharp gains in SoftBank and Taiwan Semiconductor. Japan’s Nikkei 225 climbed 2.8% to a record following the election, while the yuan touched its strongest level since 2023 after steps to limit Treasury exposure.
Technical Outlook on Charts
Euro Climbs Past $1.19
Yen Holds Gains Following Election
Gold Trades Near Weekly Highs
Pound Near $1.36 Amid Political Friction
Silver Slips Below $82
The dollar index remained below 97 on Tuesday as fears of softer foreign demand for US assets, reports of Chinese banks cutting Treasury holdings, expectations of delayed US jobs and inflation data, and a firmer yen on intervention talk weighed on the greenback.
The euro extended gains early this week, breaking above the $1.19 mark against the US dollar as global currency dynamics shifted. The move comes amid renewed dollar weakness, particularly against the yen, following Japan’s political developments. Meanwhile, the European Central Bank maintains a steady stance, expressing confidence in reaching its inflation target. Traders are now turning attention to upcoming U.S. employment and inflation figures, which may shape expectations for future Fed decisions.
Reports that Chinese authorities encouraged banks to trim U.S. Treasury exposure added pressure, while delayed U.S. jobs and inflation data later this week are set to shape expectations around the Federal Reserve.
Wall Street futures were steady after a strong start to the week that lifted the Dow to a fresh record. The S&P 500 and Nasdaq held their gains, driven by technology shares as concerns around AI spending eased.
Equities pushed higher in Asia, tracking the rebound in U.S. tech. The MSCI Asia Pacific Index rose 1.3%, with sharp gains in SoftBank and Taiwan Semiconductor. Japan’s Nikkei 225 climbed 2.8% to a record following the election, while the yuan touched its strongest level since 2023 after steps to limit Treasury exposure.
Technical Outlook on Charts
Euro Climbs Past $1.19
Yen Holds Gains Following Election
Gold Trades Near Weekly Highs
Pound Near $1.36 Amid Political Friction
Silver Slips Below $82
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