USD slips, US stocks and bonds underperform – Scotiabank

Source Fxstreet

The US Dollar (USD)—and US assets generally—are under a little pressure into the end of the week. Indications from the White House yesterday are that a decision on a US attack on Iran will come within the next two weeks weighed on USD sentiment after reports had emerged Thursday that US officials were planning for a possible strike 'in the coming days', Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

USD edges lower as US bonds and equity futures soften

"Planning may well continue and President Trump appears to want to give diplomacy more time but the mixed messaging highlights the rather capricious and volatile nature of policymaking in this administration. There may be many elements to the calculus beyond diplomacy—oil prices, opposition on the right to foreign war involvement—but the imperative for action appears weaker now than just yesterday."

"The USD dipped broadly in quiet overnight trade while US equity futures are a little softer, in contrast to gains in European equities, while Treasurys are softer and underperforming on the day. Losses for the DXY, stock futures and Treasuries are relatively minor and may reflect thinner liquidity following yesterday’s US market holiday but broad softness in US assets without an obvious trigger is a little unusual."

"FX price action suggest the brief push higher in the USD yesterday through trend resistance that has dictated the slide in the index since January has been rejected. The broader decline may start to reassert itself after the short consolidation seen in the USD generally over the past week."

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin Outlook 2025As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
Author  TradingKey
Jan 23, Thu
As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
placeholder
Ethereum Price Turns Positive — More Upside Likely if Momentum HoldsETH is now consolidating gains and might aim for a fresh move above $2,620.
Author  NewsBTC
21 hours ago
ETH is now consolidating gains and might aim for a fresh move above $2,620.
placeholder
Jeff Bezos sold nearly 3 million Amazon shares for $665.8 million in early JulyJeff Bezos has sold nearly three million shares of Amazon in the first two days of July, offloading a total of $665.8 million.
Author  Cryptopolitan
21 hours ago
Jeff Bezos has sold nearly three million shares of Amazon in the first two days of July, offloading a total of $665.8 million.
placeholder
Gold price slides further below $3,300, over one-week low amid a firmer USDGold price (XAU/USD) trades with a negative bias below the $3,300 mark during the Asian session on Wednesday and drops to a one-and-a-half-week low in the last week.
Author  FXStreet
19 hours ago
Gold price (XAU/USD) trades with a negative bias below the $3,300 mark during the Asian session on Wednesday and drops to a one-and-a-half-week low in the last week.
placeholder
EUR/USD hesitates near weekly lows as trade tensions growThe EUR/USD pair is practically flat on Wednesday, near the bottom of the weekly range.
Author  FXStreet
16 hours ago
The EUR/USD pair is practically flat on Wednesday, near the bottom of the weekly range.
Related Instrument
goTop
quote