Dollar strength causing risk sentiment to fade

Frank Walbaum

lmportant news this week:

Wed, 27th, 03:30 CET AU Consumer Price Index.
Wed, 27th, 04:00 CET NZ RBNZ Interest Rate Decision.
Thu, 28th, 14:30 CET US Core PCE Price Index.
Fri, 29th, 14:30 CET CA Gross Domestic Product.

Dollar strength pressures risk assets

The US dollar continues to strengthen, increasing pressure across risk-sensitive assets and FX markets. Equities are trading near important resistance zones, with momentum starting to fade as traders become more cautious. Crypto markets are weakening alongside softer risk sentiment, suggesting defensive positioning may continue in the short term. Precious metals also remain under pressure, with Silver falling back below the key 75 USD level. A sustained break below 73.50 USD could weaken technical support further and open the door for additional downside. Gold is also trading weaker and remains below the 4,500 USD area, reflecting stronger USD dynamics and fading safe-haven demand.
USDCAD continues to show a constructive outlook after moving above its 50-week moving average, reinforcing bullish momentum in the pair. Diverging economic expectations, relative USD strength, and softer commodity sentiment continue to support upside potential in FX markets.

Market talk

Markets are increasingly focused on whether current dollar strength develops into a broader risk-off phase. Equities remain elevated but struggle to gain fresh momentum, while crypto and metals show growing signs of weakness. FX markets continue to favor the US dollar, especially against commodity-linked currencies. Overall, sentiment remains cautious with traders closely watching technical levels, central bank expectations, and risk appetite into the next trading sessions.

Tendencies in the markets

Equities sideways, USD stronger, BTC weak, oil weaker, Silver weak, Gold weak.

Author

Frank Walbaum

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