The DXY holds above its 20-day EMA at 101.79 as safe-haven demand offsets equity market volatility, with traders awaiting today's NFP data to determine if the dollar can extend gains toward the 103.00 level.
The AI-infrastructure stock rout triggered a safe-haven bid, lifting DXY 0.35% to near 101.95, above the 20-day EMA at 101.79, with RSI at 53.26 leaving room to extend toward the yearly high near 103.00. Today's October NFP (13:30 GMT, consensus 65K vs 29K prior) is the key risk; Commerzbank notes payrolls have recently produced muted FX reactions, which could cap the move.
The sharp sell-off in AI-related stocks pushed investors into safe-haven assets, and the Dollar Index is trading 0.35% higher near 101.95.
The October US jobs report at 13:30 GMT: 65K hires are expected versus 29K in September, with unemployment steady at 4.2% and wage growth at 0.3% monthly. A major surprise could move the dollar, though recent payroll releases have had muted FX effects.
The Nasdaq 100 lost 6.4% in its worst session since March 2020 as the AI unwind escalated into an outright rout, with IT leading declines and selling spreading beyond technology. Danske notes this was partly rotation into defensives rather than uniform exit from equities, and today's NFP could stabilise sentiment, limiting further downside.
The Nasdaq 100 fell 6.4% and the Nasdaq Composite 5.5% in its worst session since March 2020, driven by an escalating unwind in AI-related stocks.
The S&P 500 fell 4.4% with every sector lower as the AI rout spread beyond technology. The breadth of the decline signals broad risk-off pressure that can persist in the coming days, though Danske's observation that defensives held up better points to rotation rather than a full exit from equities, which limits the bearish case.
Yes, the S&P 500 fell 4.4% with every sector lower, though defensive sectors held up far better, pointing to rotation within equities as much as money leaving them.
The US Dollar Index (DXY) climbed 0.35% to 101.95 as investors fled to safe-haven assets following a massive 6.4% sell-off in the Nasdaq 100. Markets are now bracing for the October Nonfarm Payrolls report, with analysts noting that while the equity rout signals broad risk-off sentiment, sector rotation into defensives may limit further downside.
The sharp sell-off in AI-related stocks pushed investors into safe-haven assets, and the Dollar Index is trading 0.35% higher near 101.95.
The October US jobs report at 13:30 GMT: 65K hires are expected versus 29K in September, with unemployment steady at 4.2% and wage growth at 0.3% monthly. A major surprise could move the dollar, though recent payroll releases have had muted FX effects.