The greenback gave up early gains after Chair Warsh's press conference. USD/JPY spiked then slid. European equities rose, led by Microsoft's pre-market surge. Euro data adds ECB pressure.
Alpha Score of 71 reflects strong overall profile with strong momentum, strong value, strong quality, weak sentiment.
The dollar extended its decline Thursday, giving up early gains after the Federal Reserve's policy decision and Chair Warsh's press conference. The greenback had recovered some ground in early European trading. It slid back after the press conference, with traders parsing Warsh's remarks as less hawkish than expected.
USD/JPY saw a sharp drop from 163.30 to 162.28 in a sudden move. The pair bounced to near 163.00 but the dollar remained lower, erasing the earlier advance. The yen's strength came despite the continued selloff in Treasuries. The 10-year yield touched 4.71% before settling around 4.68%. That level is a key threshold for broader markets, traders said, as a sustained break above 4.70% could pressure equities and support the dollar. For more on the dollar's broader moves, see our forex market analysis.
The Bank of England kept its bank rate unchanged, as expected. The central bank left the door open for future rate hikes but signaled no urgency in its statement. The decision had limited impact on sterling, which was more influenced by the dollar's direction. The euro was firmer after euro area data showed Q2 growth held up better than expected. July inflation readings, however, are adding pressure on the European Central Bank to act in September. The euro's next move will depend on how quickly the ECB moves, traders said. The EUR/USD profile tracks the pair's key levels.
Oil slipped. WTI crude fell 1% to $83.58, with traders largely unfazed by ongoing US-Iran tensions. The conflict in the Middle East has not disrupted supply, keeping a lid on prices. Gold rose 0.3% to $4,078 and silver added 0.7% to $58.07, supported by the weaker dollar.
European equities pushed higher. The DAX rose 0.2% and the CAC 40 gained 1.0%. US futures pointed to a higher open, led by Microsoft. The stock surged nearly 10% in pre-market trading after the company eased anxiety about AI capital spending. Microsoft closed the regular session at $390.54, down 0.71% on the day. The stock carries an Alpha Score of 60 out of 100, reflecting moderate sentiment. See the MSFT stock page for the latest data.
The dollar's weakness, combined with the BOE's steady stance and euro area data, sets up a busy start to August. Next week's euro area data will provide the next test for ECB policy expectations. The 10-year yield around 4.70% remains the level traders are watching for further moves in equities and currencies.
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