Dollar Retreats as Equities Steady, Bitcoin Holds Near $111K
Quick Summary:
USD Index (DXY) slipped ~0.54% to ~97.74 by 17:00 ET TradingView.
S&P 500 modestly lower (~–0.3%) at 6,481.50; Nasdaq flat to slightly down (17:00 ET) MarketWatchInvestors.
Bitcoin hovering near $111,000, showing resilience amid mixed sentiment Bitcoin NewsCoinDesk.
Ethereum (ETH) trading near $4,286, up ~0.7% over 24 hours TradingView.
China’s FX reserves rose $29.9 billion in August to $3.322 trillion, easing USD pressure Global TimesBusinessToday.
Intro
We’re closing today with a softer dollar, calm equity moves, and steady crypto sentiment. The greenback lost ground after bond yields retreated, giving breathing room to stocks and Bitcoin. Ethereum showed mild strength, while China’s rising FX reserves eased global USD demand. Not a breakout day, but a steady hand across markets — calm, observant, and ready for tomorrow’s twists.
Forex & Currency Moves
Dollar Index fell ~0.54% to 97.74 as of 17:00 ET, highlighting renewed downside ahead of U.S. data TradingViewMitrade.
EUR/USD benefits from USD softness — exact rate unverified.
USD/JPY edged lower as U.S. yields pulled back; exact figures pending confirmation.
Stocks & Market Reaction
S&P 500 declined ~0.3% to 6,481.50 by 17:00 ET; Nasdaq Composite held its ground amidst sector rotation InvestorsMarketWatch.
Investor focus remains anchored to low volatility and awaiting midweek U.S. job & inflation data.
Crypto vs USD
Bitcoin (BTC/USD) hovers near $111,000, holding support amid subtle upward pressure Bitcoin NewsCoinDesk.
Ethereum (ETH/USD) trades around $4,286, up ~0.7% in 24 hours TradingView.
Sentiment: cautious bullish. No big breakout, but no collapse either.
Economic Events Recap
China’s FX Reserves: rose by $29.9 billion in August to $3.322 trillion, signaling capital inbound and USD relief Global TimesBusinessToday.
U.S. Calendar Quiet: Markets digest this and await fresh catalysts like CPI and payrolls next week.
Christy’s Takeaway & Prediction
Today was a steady hand across markets. The dollar’s slip opened mild cracks — equities didn’t rally, but they held firm. Crypto remains grounded near strong levels. China’s reserve increase is a subtle, macro tailwind for risk assets. Looking ahead, I expect EUR/USD to creep higher if DXY holds below 98, and crypto to stay buoyed by improved liquidity flows. Keep one eye on bond yields and the other on incoming U.S. data.
Outlook for Tomorrow
USD Index: Watch 97.5 support, 98 resistance.
S&P 500: Expect range trading unless major U.S. data breaks the silence.
Crypto: Bitcoin likely to remain between $110K–$113K.
Macro Watch: China FX updates, U.S. CPI whispers, bond yields.
FAQ
Q1: Is the dollar’s decline sustainable?
Moderate. It reflects yield retreats and China flows — but U.S. data could snap it back if hawkish.
Q2: Will Bitcoin break $111K?
Maybe. It’s consolidating near that level, supported by ETF flows and general risk tone Trading News.
Q3: What’s next for U.S. markets?
Midweek brings CPI and jobs — expect volatility, especially across FX and rates.
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Disclaimer: This information is for educational purposes only and is not investment advice.
Sources
- Reuters – Currencies & Bonds: https://www.reuters.com
- TradingView – US Dollar Index (DXY): https://www.tradingview.com/symbols/TVC-DXY/
- MarketWatch – Cryptocurrency and Stock Data: https://www.marketwatch.com
- Bitcoin.com – BTC Price Insights: https://news.bitcoin.com/bitcoin-price-watch-110k-support-in-play-after-another-rejection-at-113k/
- CoinDesk – Ethereum Price: https://www.coindesk.com/price/ethereum
- Business Today – China FX Reserves: https://www.businesstoday.com.my/2025/09/07/chinas-foreign-reserve-rises-to-us3-3-trillion-in-august/
- Mitrade/FXStreet – DXY Preview: https://www.mitrade.com/insights/forex-analysis/usds/fxstreet-USDOLLARF-202509051458
- Investing.com – USD Index Futures: https://www.investing.com/currencies/us-dollar-index