USD Mixed as EUR, GBP Slide; Yen Finds Footing on GPIF News
The dollar is gaining on EUR, GBP, AUD, and NZD but losing ground to JPY, CHF, and CAD as markets digest GPIF headlines and weak equity futures.
The greenback is playing favorites early in the North American session. You're seeing dollar strength against the euro, pound, Aussie, and kiwi — but the yen, franc, and loonie are all pushing back. Pick your pair carefully right now, because the setups are not uniform.
The biggest story driving yen moves is out of Tokyo. Japanese PM Sanae Takaichi floated the idea of nudging the Government Pension Investment Fund to put more money into domestic assets rather than sending capital overseas. Yen bulls jumped on that, sending USDJPY lower initially — but the rally faded fast. Officials quickly walked it back, stressing no immediate changes to GPIF's asset allocation are on the table. The pair bounced right off the converged 100- and 200-hour moving averages. That level held. Watch it.
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EURUSD and GBPUSD are both starting the session near their intraday lows, and both are sitting on their own converged 100- and 200-hour moving averages. If those levels crack, the week's earlier gains get wiped out in a hurry. The bears are in control right now — the burden of proof is on the bulls to defend those MAs.
Risk appetite is ugly across the board. Dow futures are off 322 points, S&P futures down 75, and the Nasdaq is getting punished with a 548-point drop. Chip and AI names are leading the damage — Nvidia, AMD, Intel, and Marvell are all down between 2.7% and 4.2%. Treasury yields are falling in tandem, with the 10-year dropping nearly 5 basis points to 4.521%, signaling a flight to safety. Oil is bucking the trend, up over 2%, while gold hovers just below the $4,000 level and Bitcoin slides toward $63,100.
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