The U.S. dollar began the week softer, with the dollar index slipping 0.31% as investors rotated into equities and metals on a risk-on tone. A surge in technology shares, with Oracle buoyed by TikTok speculation and Nvidia advancing on a $100 billion pledge to OpenAI, reduced haven demand. Treasury yields rose 1–2 bps, but the curve flattened, reflecting cautious Fed signals against cutting rates too quickly.

Commodities and metals rally

Gold and silver hit fresh records, supported by Fed cut bets and central bank reserve diversification. Copper gained 0.16%, while oil was steady, balancing supply-side risk against firm demand. The commodity rally dovetailed with equity strength, leaving the S&P 500 up 0.50%, led by tech.

FX moves: euro leads gains, sterling steadies

EUR/USD climbed toward 1.1800, supported by equity and metals strength, with support seen near the 21-DMA at 1.1717. Sterling rose toward its 21-DMA at 1.3520, though upside was capped by softness against the euro. Traders await remarks from BoE Governor Andrew Bailey for policy clarity.

Yen subdued, cross-flows dominate

USD/JPY slipped 0.16%, holding above support at 147 and just under its 200-DMA at 148.62. The pair’s consolidation reflects caution ahead of Japan’s inflation data. Crosses were mixed: EUR/JPY and GBP/JPY firmed, while AUD/JPY eased slightly.

Fed voices diverge

Fed Governor Stephen Miran called for deeper cuts, citing immigration and tax changes, while other officials including Barkin, Hammack, and Bostic stressed inflation risks. The split highlighted ongoing uncertainty in Fed communication.

China supports yuan, krona outperforms

China’s pledge of liquidity injections buoyed the offshore yuan and risk proxies. The Swedish krona led G10 gains, supported by gold’s rally and broader risk appetite.

By the close: EUR/USD +0.44%, GBP/USD +0.37%, AUD/USD +0.12%, USD/JPY -0.16%, DXY -0.31%.