The dollar index (DXY00) increased by +0.15% after hitting a two-week low on Thursday, driven by a slump in stocks that boosted demand for liquidity. Kansas City Fed President Jeff Schmid commented that further rate cuts could exacerbate inflation concerns, resulting in a decreased likelihood of a Fed rate cut at the December 9-10 FOMC meeting—now estimated at 48%, down from 70% last week.
The Eurozone Q3 GDP was revised upward to +1.4% year-on-year from +1.3%. Though the euro (EUR/USD) is down -0.08%, losses are mitigated by the ECB’s concluded rate-cut cycle, contrasting with the Fed’s anticipated rate cuts extending to 2026. In Japan, the tertiary industry index for September rose +0.3% month-on-month, marking the largest increase in four months, while the 10-year JGB yield soared to a 17-year high of 1.711%.
In commodity markets, December COMEX gold fell by $114.30 (-2.72%) and silver dropped by $2.280 (-4.29%) amid reduced expectations for Fed cuts and liquidation pressures. China’s October industrial production rose by +4.9% year-on-year, below the expected +5.5%, and new home prices fell 0.45% month-on-month, marking the largest decline in a year.
