The U.S. Dollar Index trended higher overall this week, driven primarily by the Federal Reserve’s rate hike, rising inflation expectations, and higher U.S. Treasury yields.The DXY reclaimed the 100 psychological level, indicating that dollar bulls have regained the upper hand; in the latter half of the week, as oil prices and long-term yields retreated, the dollar’s upward momentum slowed somewhat, though no clear trend reversal has yet emerged. As of press time on Friday, it stood at 100.46.
Gold traded in a range for most of the week. Midweek, it experienced a sharp pullback following the Fed’s rate hike and the strengthening dollar, but buying interest at lower levels subsequently strengthened significantly. Gold prices reclaimed the $4,300 level and rebounded toward previous highs, trading at $4,372 per ounce as of this writing on Friday.Silver outperformed gold this week, also experiencing a rapid recovery after a midweek dip and breaking back above $66; as of press time, it was trading at $66.70 per ounce.
Oil prices experienced sharp volatility at high levels this week, shifting from a rapid rally driven by Middle East supply concerns to a unwinding of risk premiums following improvements in supply logistics; both Brent and WTI crude fell from three-digit levels. Geopolitical risks continue to provide support for oil prices, but the market has shifted from a one-sided chase of rising prices to a reassessment of the actual extent of supply disruptions.
Major non-U.S. currencies came under overall pressure this week, with a stronger U.S. dollar and changes in interest rate differentials remaining the dominant factors in the foreign exchange market. The euro briefly fell below the 1.15 level, while the British pound retreated to around 1.33, indicating overall weakness in European currencies;Meanwhile, the USD/JPY pair broke through 157 and continued to rise; even after the Bank of Japan raised interest rates, the yen failed to stage a sustained rebound. The Australian dollar held up relatively well, with the 0.71 level serving as a key support zone.
U.S. stocks this week generally followed a pattern of falling first and then rebounding, with rapid sector rotation.Early in the week, trading in tech, semiconductor, and AI stocks cooled significantly, with capital temporarily shifting toward the energy and defensive sectors; as oil prices and U.S. Treasury yields retreated, tech stocks saw capital flow back in during the latter half of the week.Overall for the week, the Dow fell 1.69%, the S&P 500 dropped 0.08%, and the Nasdaq rose 0.72%. The Dow recorded its third consecutive week of declines, falling 1.7% for the week—its worst weekly performance since March.