“King Dollar” returned with a vengeance last week as global markets were jolted by a volatile mix of geopolitical escalation and a dramatic repricing of U.S. monetary policy expectations. The greenback surged broadly, pushing Dollar Index back above the psychological 100 level. The question now is how long Dollar can keep the “throne”. To answer […]
Recent US dollar strengthening in response to the escalating conflict in Iran has done little to temper many investors’ long-term bearish views on the greenback, with some buying into trades anticipating a rally in higher-yielding currencies. The US dollar index (DXY), a measure of the dollar’s value against a basket of currencies, hit 99.683 on
Global markets closed the week under the growing shadow of a rapidly escalating energy crisis. What began as a geopolitical confrontation in the Middle East has now evolved into a far broader macro shock, forcing investors to reassess everything from inflation risks and monetary policy to equity valuations and currency dynamics. At the center of
The Iran conflict has forced investors to liquidate profitable emerging market foreign exchange options positions, as a broad risk-off move triggered stop-outs and value-at-risk breaches across multiple currency pairs. “Any positions that people have held for the last few months – positions where they’ve actually made money – those are the ones getting cut very
Global markets closed February under conditions few anticipated even days ago. The events in the last 48 hours have shifted the framework from negotiation risk to open conflict. A geopolitical “black swan” has moved from theoretical scenario to live reality. What had been treated for months as a tail risk scenario has now materialized into
Global markets were forced to face three major developments last week, each capable on its own of destabilizing sentiment. Instead of buckling under the weight of legal, monetary, and geopolitical shocks, investors responded with surprising composure. At the end of the week came a landmark legal decision in the US that struck at the core
There was no single, dominant theme in currency markets last week. Instead, price action reflected a mix of cross-asset divergences. Dollar ended as the worst performer, despite the fact that Fed expectations barely shifted following high-profile releases of non-farm payrolls and CPI. Meanwhile, US Equities experienced volatility, particularly around renewed AI disruption fears, yet there
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 by abandoning equities wholesale, but by
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 of former Fed Governor Kevin
Relentless geopolitics has continued to haunt global markets since the turn of the year, and last week offered little respite. What has changed, however, is not the scale of the headlines but the market’s tolerance for them. Investors appear increasingly fatigued by policy uncertainty and abrupt reversals from the US, where confidence has become harder
The second full week of 2026 was dominated by high-level political and macro headlines, leaving markets in a constant state of reassessment rather than conviction. Traders were confronted with a dense mix of headlines, ranging from renewed scrutiny of the Fed’s independence to mounting speculation over who will succeed Jerome Powell as Fed chair. At
The first full week of 2026 delivered a barrage of geopolitical shocks that would normally be expected to rattle global markets. Instead, investors largely looked through the noise, producing a market outcome that appears counterintuitive at first glance. The most dramatic development came from Latin America, where the US carried out a direct military intervention
The past week delivered no shortage of surprises, yet markets ended it with remarkably little conviction. Key macro data and central bank decisions challenged prevailing assumptions, but follow-through across major assets proved elusive. US economic releases hinted at a faster cooling in both employment and inflation. Under normal circumstances, that combination would have fueled enthusiasm
Dollar ended last week broadly lower, outperforming only the even more beleaguered Yen. That said, the technical deterioration in Dollar is still measured rather than decisive. For now, Dollar’s selling momentum reflects hesitation more than capitulation. Two key forces are shaping this fragile balance. The first is indecisive risk sentiment, which remains unsettled rather than
Dollar spent most of the week pinned to the bottom of the performance board, as a steady flow of data reinforced expectations for a Fed rate cut in December. Even though selling pressure eased slightly into Friday—thanks in part to a surprisingly firm rebound in longer-dated Treasury yields—the greenback still struggled to find a foothold.
Global markets closed last week on an uncertain footing. While bears appeared to have an upper hand, the control was never firmly gripped. Conviction was relatively thin as traders were reluctant to commit decisively. The overall impression was of markets still searching for a coherent theme to latch onto. Equities in major centers reflected the
Last week delivered what should have been a moment of relief for global markets: the US finally ended its historic government shutdown, clearing the way for normal economic data flow to resume. Yet instead of sparking a rally, the reopening brought little comfort. U.S. assets struggled across the board. Equities came under pressure as investors
