Dollar Firmed Pre US Data Releases

STATE OF THE MARKETS

Dollar firmed pre US data releases. US stocks eked out small gains on Tuesday as the major indices shook off early losses in a volatile, holiday‑shortened session ahead of key inflation and GDP data later in the week. The S&P 500 added about 0.1%, while the Dow Jones Industrial Average and tech‑heavy Nasdaq Composite also closed higher by roughly 0.1%, masking sizable intraday swings that saw the Nasdaq down more than 1% at one point before reversing. The Russell 2000 small‑cap index slipped slightly, finishing fractionally lower as investors stayed cautious on higher‑beta exposure despite the modest headline gains in the large‑cap benchmarks. The U.S. Dollar Index edged higher, with DXY closing near 97.1–97.2 as it bounced from recent troughs and attempted to break out of its early‑2026 downtrend, supported by safe‑haven interest and expectations for relatively firm U.S. yields.

In the commodity markets, WTI crude oil extended its recovery within an ascending channel, with front‑month futures closing around the low‑to‑mid‑$63 area after finding a floor near 62.2 dollars per barrel in recent sessions.  Gold, by contrast, slipped alongside other precious and industrial metals as the firmer dollar and cautious pre‑data tone weighed on demand, pushing prices modestly lower on the day. Copper and silver also weakened, reflecting a mix of stronger dollar dynamics and uncertainty about the upcoming U.S. macro releases and their implications for global growth.

In the FX space, the stronger dollar put renewed pressure on several major and high‑beta currencies. The greenback’s bounce, particularly against the British pound, followed softer‑than‑expected U.K. employment data, which reinforced concerns about the U.K. growth outlook and limited sterling’s ability to rally. Pro‑cyclical currencies such as the Aussie and Loonie were kept in check as investors balanced recovering oil prices and still‑constructive crude technical against lingering risk aversion tied to AI‑related equity volatility. The Euro remained range‑bound, tugged between a firmer dollar and cautious global risk sentiment, leaving the single currency largely confined to recent trading bands versus the greenback. Overall, the medium‑term tone for the dollar stayed supported by yield differentials and its haven role, even as positioning remains sensitive to the upcoming inflation and GDP prints that could reshape expectations for the Fed’s policy path.

G8 CURRENCIES SENTIMENTS

** ST refers to Short-Term daily turnover, MT is Medium Term weekly 
and LT refers to Long-Term monthly turnover.

WALL ST. TOP FIVE INFLOWS

** tickers with total inflows but block orders outflows are not included

WALL ST. TOP FIVE OUTFLOW

** tickers with total outflows but block orders inflows are not included

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