Markets Roundup: Dollar Slides, Stocks Lift, Bitcoin Wobbles!
Quick Summary
Dollar Index fell ~0.7 percent to ~97.54 by 16:05 ET after soft US payrolls
EUR/USD climbed near 1.1750, GBP/USD rose above 1.3500, USD/JPY dipped to ~147.5
S&P 500 and Nasdaq added about 0.3 percent as yields slipped to ~4.07 percent
Bitcoin retreated ~1.5 percent from 113K highs, Ethereum tracked lower
Markets now brace for US CPI and Fed commentary tomorrow
Intro
The US dollar closed the week under pressure after a weaker-than-expected jobs report jolted currency, equity, and crypto markets. The greenback lost ground against major peers, Wall Street indices edged higher, bond yields softened, and bitcoin slipped back from resistance. It was a session that neatly captured the tension between weakening US data and rising hopes of easier Fed policy. With CPI and inflation expectations looming, the next twenty-four hours could be pivotal.
Forex and Currency Moves
The dollar’s broad retreat was most visible against the euro and pound. By late New York trade, EUR/USD was up around 0.5 percent at 1.1750, testing its highest levels since mid-August. GBP/USD gained about 0.8 percent to 1.3505. USD/JPY fell close to 0.99 percent, sliding from 148.1 to 147.5, a clear signal that softer yields are weighing.
Behind the moves was one number: US nonfarm payrolls. The August print showed just 22,000 new jobs compared with forecasts of 75,000. The unemployment rate nudged higher to 4.3 percent. Currency markets wasted no time, selling dollars and lifting peers.
The Dollar Index (DXY) dropped about 0.70 points to 97.54. Traders priced in higher odds of rate cuts before year-end.
Stocks and Market Reaction
Equities responded in familiar fashion. Softer data means softer yields, and stocks tend to like that. The S&P 500 gained about 0.3 percent to finish around 6481. The Nasdaq Composite added a similar 0.3 percent, holding steady near 21,700.
The 10-year Treasury yield eased about 5 basis points to 4.07 percent. Lower yields boosted growth sectors, with technology stocks leading modest gains. Energy lagged, tied to a pullback in oil prices.
Global markets echoed the US theme. European indices firmed modestly, while Asian markets closed mixed. The common thread: the US dollar is weaker, and that ripple supports risk appetite.
Crypto vs USD
Bitcoin’s day was less kind. After testing resistance near 113,000 in early trade, BTC/USD retreated by about 1.5 percent to hover around 111,200 by 16:05 ET. Ethereum mirrored the decline, slipping about 2 percent toward 4290.
The weakness was technical rather than fundamental. Crypto remains tethered to broader liquidity conditions, but near-term resistance levels capped enthusiasm. Derivatives data showed nearly 370 million dollars in bitcoin positions liquidated over the past day, split between longs and shorts — a sign of volatility shaking out over-leveraged bets.
Still, the backdrop of a weaker dollar offers long-term support. Crypto is pausing, not breaking.
Economic Events Recap
The day’s central event was the US nonfarm payrolls release at 08:30 ET. Actual: 22,000. Consensus: 75,000. Prior (July): 79,000. The unemployment rate ticked up to 4.3 percent from 4.2 percent.
That disappointment reshaped market pricing. Futures now imply nearly 90 percent odds of a 25 basis point Fed cut before year-end. Treasury yields adjusted lower, equities higher, and the dollar broadly weaker.
Other scheduled data was light, leaving the payroll miss to dominate the session.
Christy’s Takeaway and Prediction
This was the kind of day that sharpens a trader’s focus. The jobs number was weak enough to dent confidence in US growth but not yet disastrous. The market’s instinct was to sell the dollar, buy stocks, and test crypto’s resilience.
My call: tomorrow’s CPI report is the true swing factor. If inflation prints soft, the dollar could fall another half point on the index, sending EUR/USD toward 1.1800 and USD/JPY closer to 146. If inflation holds firm or surprises higher, today’s dollar weakness may quickly reverse.
The line that matters: jobs disappointed, but inflation decides.
Outlook for Tomorrow
US CPI release — the marquee risk event, 08:30 ET
Fed speakers — any hawkish pushback could stabilise the dollar
EUR/USD watch — resistance at 1.1800, support near 1.1710
BTC/USD levels — 110,000 support, 113,000 resistance
10-year Treasury yield — 4.00 percent is the key pivot zone
FAQ
Q: Why did the dollar fall so broadly today?
Because the payrolls report was much weaker than expected, pushing up odds of Fed rate cuts.
Q: Why did stocks rise while crypto fell?
Stocks benefit from lower yields, while crypto faced technical resistance and derivative liquidations.
Q: What should traders watch next?
The US CPI release tomorrow. It will determine whether today’s moves extend or reverse.
Related Articles
Sources
Dollar reaction and payroll data from Reuters
S&P 500 and Nasdaq moves from Reuters Global Markets Wrap
EUR/USD analysis from Trading News
Bitcoin update from Economies.com and CoinMarketCap
Treasury yields and market odds from Investing.com
Disclaimer: This information is for educational purposes only and is not investment advice.