Rabobank’s RaboResearch Global Economics & Markets team highlights that hotter-than-expected US CPI has pushed US 2-year and 10-year yields sharply higher, reviving talk of a possible 50 bps Federal Reserve hike. The report links the move to renewed inflation pressures in groceries, housing and services, and notes that this comes just after investors had rushed back into Treasuries.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is remaining steady after registering over 0.5% gains in the previous day and trading around 102.20 during Asian hours on Wednesday.

About a sixth of Monday's rebound is gone from all three US stock indexes after a hot October Consumer Price Index (CPI) and talk of a half-point Fed hike. The Nasdaq 100 gave back about half of Monday's gain, hitting a session low just above 27,400, and is now back near 27,750.

The US Dollar (USD) is posting minor gains against most peers on Tuesday, with markets calm ahead of the US Consumer Price Index (CPI) release, while lower Oil prices are weighing on safe havens, including the Greenback.

The US Dollar (USD) is facing a shifting macroeconomic narrative as market focus rotates between near-term Federal Reserve (Fed) policy expectations, energy price dynamics, and equity market underperformance.

ING’s Chris Turner expects the US Dollar (USD) to remain underpinned into early 2027 by strong US growth, inflation above 3% and a hawkish Federal Reserve. He notes that as headline inflation falls back towards the Fed’s 2% target, short-dated US rates should decline.

TD Securities’ macro team, led by Jayati Bharadwaj and colleagues, argues that the US Dollar (USD) is losing its status as an effortless haven, with muted gains despite an AI-driven global equity selloff. They expect US vs Rest of the World (RoW) equity performance to remain the key driver.

MUFG’s Lee Hardman notes the US Dollar has weakened, with the Dollar Index dropping below Friday’s high as Brent declines towards USD90. Lower Oil prices and falling US Treasury yields are easing pressure on the Fed, while markets await the October US CPI report. Futures still price a December Fed hike but fewer moves in 2027.

Dow Jones futures advance 0.48% to trade around 52,750 during the European hours on Tuesday. Meanwhile, S&P 500 futures gain 0.17% to trade around 7,590 and Nasdaq 100 futures decline 0.15% to trade around 27,970.

Deutsche Bank’s Jim Reid highlights a strong rebound in US equities, with the S&P 500 posting its best day since the Iran ceasefire announcement in April. The move was led by AI-related and semiconductor names after positioning had turned underweight. The index has almost fully recovered its post-midterm losses, while volatility, as measured by the VIX, fell sharply.

The US Dollar (USD) is broadly under pressure against its peers amid lower oil prices due to United States (US)-Iran deal hopes.

The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, consolidates around the 101.70 region during the Asian session on Tuesday, awaiting further developments surrounding the Middle East crisis and the US consumer inflation figures.

The safe-haven US Dollar (USD) is showing the weakest performance among major currencies on Monday, as improving market sentiment boosts riskier-perceived currencies, with negotiations for a Middle East peace apparently making progress and Oil prices dropping to levels near two-month lows.

Brown Brothers Harriman’s (BBH) Elias Haddad notes that the US Dollar (USD) has given back part of its post-NFP gains, but still benefits from robust US economic activity, a firm labor market and sticky inflation that underpin the Federal Reserve’s (Fed) hawkish bias.

MUFG’s Lee Hardman notes the US Dollar has rebounded, lifting the Dollar Index back above 102.00 after post-election losses. Stronger US labour market data and higher employment growth have shifted the Federal Reserve’s focus toward upside inflation risks.

ING strategists Francesco Pesole, Frantisek Taborsky and Chris Turner note that recent contagion from AI-driven equity selling into defensive stocks has lifted the Dollar, even before strong US jobs data.

Dow Jones futures advance 0.65% to trade around 51,720 during the European hours on Monday. Meanwhile, S&P 500 futures gain 0.30% to trade around 7,420 and Nasdaq 100 futures decline 0.12% to trade around 27,050.

Deutsche Bank’s Jim Reid and team note the Dollar Index closed at 102.11, up 0.51%, as markets pivot from strong US payrolls toward October CPI and PPI. Their economists expect softer monthly inflation prints, while year-on-year CPI cannot be calculated due to missing 2025 index levels. They still project 25bp Fed rate hikes in December and March.

ING’s Chris Turner notes that the US Dollar (USD) has reacted only modestly to the sharp sell-off in US tech stocks, with FX markets treating it as a sector-specific story.

The US Dollar (USD) is showing the strongest performance among major currencies on Friday, amid a mix of risk-aversion, following a tech-led rout in equity markets, and investors’ hopes of a strong US Nonfarm Payrolls (NFP) report later in the day.

DBS Group Research’s Philip Wee notes that the Dollar failed to benefit from the latest risk-off episode as US Treasury yields and Fed hike expectations fell. He highlights that the DXY Index was flat despite an equity rout, with investors reassessing the need for further tightening.

MUFG’s Lee Hardman notes that the US Dollar has reversed its initial post-election losses despite a sharp sell-off in AI-related equities.

The US Dollar (USD) trades sharply higher against its major currency peers as global sector rotation due to intensified sell-off in stocks related to Artificial Intelligence (AI) infrastructure has increased demand for safe-haven assets.

Dow Jones futures decline 0.85% to trade around 51,170 during the early European hours on Friday. Meanwhile, S&P 500 futures inch higher 0.06% to trade around 7,390 and Nasdaq 100 futures advance 0.90% to trade around 26,990.

The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, gains some follow-through positive traction during the Asian session on Friday, recovering further from its lowest level since late September set the previous day.

Wednesday was the Dow Jones Industrial Average's best session since April 2025 and Thursday is on track to be its worst since the same month, on the same election result. The index trades just above 51,500, below Tuesday's close and at its lowest since October 14.

A fresh wave of selling in AI-linked stocks is pulling Wall Street into one of its worst days in recent memory. A Democratic win in both the upper and lower houses has added fresh worries that AI data center projects could face renewed moratoriums and regulatory pressures.

TD Securities strategists argue that a Democratic blue sweep is modestly negative for the US Dollar (USD) via relative equities, rates and growth.

The US Dollar (USD) is reversing previous losses on Thursday as markets start to shift their gaze away from the results of the US midterm elections to the solid US macroeconomic figures released this week, which pave the path for another Federal Reserve (Fed) interest rate hike in December.

MUFG’s Lee Hardman notes that the US Dollar (USD) has extended its post-US mid-term election decline, with the US Dollar Index (DXY) down and US yields softer as Brent Oil drops back towards its 200-day moving average.