USD marching alongside with Gold and stocks

Alexander Kuptsikevich FxPro

Dollar

The dollar has been on an impressive streak, gaining almost daily, particularly against emerging market currencies. This is the currency market’s reaction to Trump’s higher chances of winning the presidential race, fuelled by his promises of increased trade tariffs. Even the anticipation of these measures is driving up the US currency.

The Dollar Index has rallied almost 3.7% from the local lows of three weeks ago. While impressive, this is only a recovery from 13-month lows to the July heights. Technically, the Dollar Index has climbed to its 200-day moving average.

Perhaps it is beginning to test the strength of the downtrend set in motion by the weakness of US monetary policy. However, forex traders should bear in mind that the strength of the US currency is largely due to a sharp softening in the tone of monetary authorities in other developed countries. Therefore, there are highs in stock indices and gold.

Indices

The S&P500 index hit new all-time highs at the beginning and end of the week before a small correction on Tuesday. This is the most dangerous pattern for bears as it quickly recharges the bulls without accumulating overbought conditions. The stock market is rising again on the back of record earnings from companies listed on the stock exchange. They are easily beating analysts’ forecasts, which were very pessimistic before the reporting season started.

Gold

Gold returned to all-time highs at the end of the week, gaining 2% in the last five days. The spot price broke above $2,700 per troy ounce for the first time. This is an extension of the bullish momentum from October 10th after weak weekly US employment data.

Technically, this is a classic return to growth after a small shake-out of positions in the early days of the month. Further movement in the Fibonacci pattern suggests that the $2,820 area is the next target to the upside.

In general, the markets are now experiencing a very unusual combination of dollar and gold rallies. It is more common for them to move in opposite directions and for them to move together only during periods of heightened demand for defensive assets, for example, because of geopolitics.

Author

Alexander Kuptsikevich

FxPro

Alexander Kuptsikevich, a senior market analyst at FxPro, has been with the company since its foundation. From time to time, he gives commentaries on radio and television. He publishes in major economic and socio-political media.

AUD/USD turns lower toward 0.7000 after mixed Australian jobs data

AUD/USD is losing ground toward 0.7000 in the Asian session on Thursday, following the release of the Australian August jobs report, which showed that the Unemployment Rate rose to 4.6% versus 4.5% expected, while Employment Change beat estimates, arriving at 39.5K. Traders also remain unnerved ahead of the critical Trump-Xi meeting.

USD/JPY keeps the red near 158.00 as Japanese Yen firms up

USD/JPY retreats from three-week highs and holds losses near 158.00 in the Asian session on Thursday. Surging Japanese bond yields lift the Yen amid looming intervention risks, while the US Dollar preserves overnight gains to a two-month high amid hawkish Fed bets and elevated US bond yields.

Gold bears tighten their grip as Fed rate hike bets rise

Gold sticks to a negative bias for the second straight day, trading below the $4,300 mark or a one-week low during the first half of the European session as traders await a crucial meeting between US President Donald Trump and his Chinese counterpart Xi Jinping. Expectations for a major announcement are low, though market players will look for any progress on rare earths, technology restrictions, and an extension of the current US-China truce.

XRP is flashing three bullish signals heading into a historically weak October

XRP (XRP) is still flashing 3 bullish signals across its holders, derivatives, and ETF data. These signals come as the token gave back part of its September gains on Thursday. The token traded near $1.50 at press time, down about 6.3% over 24 hours, according to BeInCrypto Markets data. The pullback still leaves XRP up over 15.6% on the week, a gain that tracks a broader market rally.

Advanced economies: From one example of resilience to another

History tends to repeat itself in advanced economies. Once again, growth ultimately fell short of expectations by only a small margin in the first half of 2026, despite the conflict in Iran. As early as 2025, the impact of tariffs was less severe than feared.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.