Nasdaq weak, Dow Jones rolling

Frank Walbaum

lmportant news this week:

Wed, 29th Jul, 03:30 CET AU Consumer Price Index.
Wed, 29th Jul, 20:00 CET US FOMC Interest Rate Decision.
Thu, 30th Jul, 13:00 CET UK BoE Interest Rate Decision.
Thu, 30th Jul, 14:30 CET US PCE Price Index.
Fri, 31st Jul, tentative JP BoJ Interest Rate Decision.

Dollar strength fuels rotation away from tech

The US Dollar is strengthening again, adding pressure across risk assets and accelerating a rotation within equity markets. Technology stocks have started to underperform, with the Nasdaq turning lower after its recent rally. The S&P 500 is also losing momentum, while the Dow Jones continues to outperform as investors rotate into more defensive and industrial sectors. European markets remain relatively resilient, with the DAX benefiting from stronger industrial and export-oriented companies.
The current market environment suggests capital is rotating away from high-growth AI and technology names toward more traditional sectors. A stronger Dollar is adding to the pressure by tightening financial conditions and weighing on global liquidity. Precious metals have also turned lower, as Dollar strength offsets safe-haven demand. In cryptocurrencies, the weakness in technology shares is spilling over into digital assets. Bitcoin has slipped back below the $65,000 level, Ethereum is holding relatively firm above $1,870, while XRP is approaching the important $1.00 support area. A break below this level could trigger additional downside momentum across the broader altcoin market.

Market talk

Sector rotation has become the dominant theme. Rather than broad market selling, investors are reallocating capital from AI and growth stocks into industrials, value shares, and defensive sectors. If the US Dollar continues to strengthen, this rotation could intensify and place further pressure on technology stocks, cryptocurrencies, and precious metals. Traders will be watching whether the Nasdaq breaks additional technical support levels, as this could accelerate selling across other risk-sensitive assets.

Tendencies in the markets

Equities correcting, USD stronger, crypto weak, oil sideways, Silver weak, Gold weak.

Author

Frank Walbaum

AUD/USD hangs near three-week low, below 0.6950 as traders await US NFP report

AUD/USD hits a three-week low during the Asian session on Friday as the RBA’s dovish shift and a rout in equity markets weigh on the risk-sensitive Aussie. However, the recent slump in US bond yields to a two-month low keeps US Dollar bulls on the back foot and limits losses for the currency pair as traders look to the US NFP report for a fresh impetus.

USD/JPY bounces off three-week low; keeps the red near 157.65 as focus remains on US NFP

USD/JPY bounces off the weekly low set during the Asian session, as bears turn cautious ahead of the US NFP report due later this Friday. The upside seems limited as the recent slump in US bond yields and hopes of Iran war de-escalation undermine the US Dollar. Moreover, a hawkish BoJ and intervention risks support the Japanese Yen, capping the pair.

Gold pares intraday losses; down a little below $4,100 as focus remains on US NFP

Gold recovers most of its early intraday losses, trading with a mild negative bias near $4,070-$4,075. The US Dollar extends Thursday's recovery from its lowest level since late September, exerting some downward pressure on the commodity. Furthermore, a hawkish US Federal Reserve contributes to the precious metal pullback from a two-week high, which it touched the previous day. Bearish traders, however, seem hesitant ahead of the release of US monthly employment details, which should provide a fresh impetus to the precious metal.

Canada Unemployment Rate set to hold at 6.5% as hiring recovers

Statistics Canada will release its October Labour Force Survey on Friday at 13:30 GMT, with markets anticipating a modest recovery in employment following September's sharp decline. The Unemployment Rate will also be closely watched, as the latest figures could influence the Canadian Dollar.

US Nonfarm Payrolls expected to pick up in October

The United States Bureau of Labor Statistics is set to release October Nonfarm Payrolls data on Friday at 13:30 GMT. The report is expected to show an increase of 65K jobs, up from 29K in the previous month.

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.