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Weekly Global Market Highlights
This week, the US Dollar Index (DXY) is set to finish its second week in the red, trading nearly 0.5% lower than its weekly open. The drop shows weaker momentum as traders wait for a large batch of delayed US data after the government reopened. This data is expected to signal a softer US economy. Adding to the caution, the White House confirmed that the October jobs report will come without the unemployment rate, creating more uncertainty and adding pressure on the dollar.
Most major currencies, including the yen and euro, stayed weak. Gold and Bitcoin also fell, while oil prices dropped due to lower global demand. The pound struggled as UK growth concerns increased. Overall, the market stayed cautious—traders leaned toward safer assets, while riskier areas like equities, tech stocks, and crypto showed mixed performance.
1. U.S. Government Shutdown Ends After 43 Days
This week, the longest U.S. government shutdown finally ended after 43 days. A new funding bill was passed, and President Trump signed it. Thousands of workers who were unpaid or furloughed will now return to normal work as departments reopen.
2. Michael Burry Closes His Hedge Fund
Michael Burry, known for “The Big Short,” closed his hedge fund this week. He officially removed Scion Asset Management from registration. The sudden closure surprised many because Burry is famous for his bold market calls.
3. Dollar Falls as Euro and Yen Get Stronger
This week, the U.S. dollar fell as traders reacted to a weak U.S. outlook and market uncertainty. The euro moved above key levels, and the yen also gained strength as investors preferred safer currencies.
4. Europe Talks About Pooling Dollar Reserves
European officials discussed a new idea where different countries could share dollar reserves. This system may help them depend less on the U.S. Federal Reserve during tough financial periods. The plan is still in early discussion.
5. Bitcoin Falls Below $97,000
This week, Bitcoin dropped below $97,000, hitting its lowest level since early May. The fall came after large liquidations in leveraged positions and weak risk sentiment in global markets. Many traders reacted by cutting exposure as Bitcoin moved back to an important support zone.
6. Oil Prices Drop 4% After OPEC Changes Outlook
This week, oil prices fell by more than 4% after OPEC said the global oil market will likely be balanced in 2026, rather than facing a shortage. The change came because non-OPEC countries are increasing production, and inventories are rising again. This revised outlook led to heavy selling in oil markets.
7. Fed May Resume Bond Purchases Soon, Says NY Fed President
This week, New York Fed President John Williams said the Federal Reserve may soon start buying bonds to help markets run smoothly. He clarified that this is only to manage short-term liquidity and not a change in overall interest rate policy.
Major Currency Pair Movements
- EUR/USD: Down slightly; euro weak, dollar strong.
- USD/JPY: Up; yen weak, dollar strong.
- GBP/USD: Stable; traders cautious.
- USD/CAD: Up a little; dollar stronger than weak oil.
- AUD/USD: Down; strong dollar keeps Aussie low.
- XAU/USD (Gold): Lower; dollar strong, yields high.
Trader’s Takeaway
- The US dollar remains strong, driving most currency moves.
- Yen weakness pushes USD/JPY higher.
- The Euro and the Pound are moving carefully in tight ranges.
- Gold and Bitcoin are under pressure due to a strong dollar and rising yields.
- Oil is mixed after OPEC’s new 2026 outlook.
What to Watch Next Week
- Fed Speeches: Officials may signal liquidity and bond purchases.
- US & EU Economic Data: Inflation, jobs, and other reports may move currencies and bonds.
- OPEC & Oil Inventories: Supply and demand updates can affect oil prices and USD/CAD.
- Tech Stocks & AI Deals: Big announcements may move US indices and market sentiment.
Summary
This week, the US dollar held firm, while the yen stayed weak. The euro and pound moved in tight ranges with no strong direction. Gold, Bitcoin, and oil came under pressure as demand stayed soft. Overall, markets were driven by key events like the Fed’s outlook, the government shutdown impact, OPEC developments, and ongoing tech and AI news.