Dollar corrects as markets watch bank earnings

Frank Walbaum

Important news this week

Wed, 14th, 14:30 CET US Core Consumer Price Index.
Thu, 15th, 02:30 CET AU Unemployment Rate.
Thu, 15th, 14:30 CET US Core Producer Price Index/Retail Sales.

Dollar corrects as markets watch bank earnings

The US Dollar remains broadly strong but is now correcting, with a possible retest of the breakout zone around 102 on the Dollar Index. Equity markets are showing a mixed picture: the S&P 500 and Nasdaq are weaker, while blue-chip indices such as the Dow Jones and DAX are moving higher. Crypto started the session on the back foot but has since recovered, while the Japanese Yen is gaining slightly across the board.
Major US banks report earnings today, potentially providing a fresh catalyst for equities and broader market sentiment. Meanwhile, the IMF has renewed concerns about public finances, keeping government debt and fiscal sustainability in focus.

Market talk

The reaction around the DXY’s 102 zone will be important. If the former resistance holds as support, the recent breakout could remain intact despite the current pullback. A move back below the zone, however, would raise questions about the Dollar’s momentum and increase the possibility of a deeper correction.
Bank earnings could help determine whether the weakness in technology stocks spreads to the wider market. Investors will be watching not only headline profits but also lending conditions, consumer resilience and management outlooks. Strong results could support the Dow and broader equities, while cautious guidance may reinforce the current divergence between blue chips and technology shares.

Tendencies in the markets

Equities mixed, USD correcting, crypto positive, oil positive, metals positive, JPY stronger.

Author

Frank Walbaum

AUD/USD remains depressed near 0.6950 after RBA minutes

AUD/USD attracts follow-through selling during Tuesday’s Asian session, looking to extend the overnight rejection slide from 0.7000, or a two-week top, following the release of RBA meeting Minutes. The US Dollar retains a bullish undertone near its highest level since April 2025 as energy-driven inflation risks keep December Fed rate hike bets firmly on the table. Adding to this, geopolitical risks further underpin the safe-haven USD.

USD/JPY extends retreat below 158.50 as intervention risks loom

USD/JPY is dropping below 158.50 in the Asian session on Tuesday, snapping a two-day winning streak and pulling back from an over two-week top touched the previous day, despite Japan's soft PPI inflation print. Bulls turn cautious amid speculation that authorities will step in to prop up the Japanese Yen, which, in turn, weighs on the pair.

Gold bulls seem hesitant below $4,200 as hawkish Fed offset USD weakness

Gold retains a mildly positive bias though it remains capped below the $4,200 mark and the top boundary of a two-week-old trading range. The US Dollar retreats from its highest level since April 2025 amid some profit-taking, offering support to the precious metal. However, the US Federal Reserve's hawkish stance and escalating Middle East conflicts could limit deeper losses for the safe-haven buck, keeping a lid on the commodity and warranting some caution for aggressive bulls.

Solana reclaims 50-day EMA amid tokenization expansion

Solana (SOL) trades above $107 on Tuesday, reclaiming the 50-day EMA after closing below it the previous day. Meanwhile, Solana’s tokenization expansion and the upcoming listing of Hong Kong’s second spot Solana Exchange Traded Fund highlight growing institutional interest.

Dollar corrects as markets watch bank earnings

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?