The information provided is of general nature only and does not take into account your personal objectives, financial situations or needs. Before acting on any information provided, you should consider whether the information is suitable for you and your personal circumstances and if necessary, seek appropriate professional advice. All opinions, conclusions, forecasts or recommendations are reasonably held at the time of compilation but are subject to change without notice. Past performance is not an indication of future performance. Go Markets Pty Ltd, ABN 85 081 864 039, AFSL 254963 is a CFD issuer, and trading carries significant risks and is not suitable for everyone. You do not own or have any interest in the rights to the underlying assets. You should consider the appropriateness by reviewing our TMD, FSG, PDS and other CFD legal documents to ensure you understand the risks before you invest in CFDs. These documents are available here.
Any references to Australian or international shares, sectors, indices, ETFs, crypto-related stocks or other instruments are provided for market commentary and watchlist purposes only and do not constitute a recommendation, offer or solicitation to buy, sell or hold any financial product or adopt any investment strategy. International markets may involve additional risks, including currency fluctuations, regulatory differences, market structure differences, reduced liquidity and higher volatility. Company-specific, sector-specific and macroeconomic risks may also affect performance.
Commentary on geopolitical developments, economic data, central bank decisions, earnings, policy changes and other global or financial market events is based on information available at the time of publication and may change without notice. Such events can lead to sudden market moves, price gaps, reduced liquidity, wider spreads and increased volatility, particularly in leveraged products such as CFDs. Forward-looking statements, expectations and scenario analysis are inherently uncertain and should not be relied on as guarantees of future market behaviour or outcomes.
US Dollar: Yield support and AI risks – MUFG
MUFG’s Derek Halpenny notes the US Dollar consolidating at new highs above 103 on DXY, supported by a sharp 2-year UST yield move and rising risk aversion linked to poor tech sentiment and a global Microsoft outage.
US Dollar strength anchored in yields
"One source of US dollar selling might come from Japan. FM Katayama has again warned against “sharp, one-sided” FX moves and underlined the close relationship with the US."
"The US dollar is consolidating at new highs above the 103-level on DXY, levels not seen since the Liberation Day period in April 2025."
"A global Microsoft outage will like add to the recent poor tech sentiment that may intensify recent risk aversion, which in turn will hurt the high-beta G10 currencies further versus the US dollar."
"Still, while a 25bp rate hike from the Fed is the base-case, we need to be mindful of the risks. Another strong jobs report and a further rebound in energy prices would likely see further pricing for a 50bp move, or a number of back-to-back hikes – we are close to priced for a back-to-back hike in Dec-Jan and about 10bps short of three consecutive 25bp hikes through to March. The reversal of optimism over an end to the US-Iran conflict has reinforced this pricing and higher front-end yields."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
Related Articles
