USD cheapens as soft data fuels dovish Fed bets [Video]

Ipek Ozkardeskaya Swissquote Bank Ltd

The US Dollar slid further as December retail sales showed no growth, raising fresh concerns about the strength of American consumers.

Markets are now pricing in earlier Fed easing, with US 2-year yields falling to multi-year lows and the dollar weakening. This shift fuels a rotation from Big Tech to smaller, more domestic-focused stocks. While AI investments remain a major growth driver, rising debt and valuation questions are emerging for the tech giants.

All eyes are on today’s US jobs report. Softer-than-expected numbers could reinforce dovish Fed bets, further supporting equities rotation, while stronger data may delay easing but won’t erase underlying weakness in Main Street.

Author

Ipek Ozkardeskaya

Swissquote Bank Ltd

Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.

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