The euro fell against a mixed dollar at month-end Friday as risk-off sentiment fueled by AI spending concerns and higher oil prices lifted demand for haven currencies.
The Nasdaq fell to its lowest in nearly three months, while a potential escalation in the US-Iran conflict after the US midterm elections helped lift crude.
Dallas Fed President Lorie Logan said at least two more Fed hikes may be needed to curb inflation.
St. Louis Fed President Alberto Musalem said a key priority is ensuring elevated inflation does not spread through the broader economy, while Richmond Fed President Tom Barkin said policy remains on a clear tightening path, though the pace of hikes is uncertain.
San Francisco Fed President Mary Daly said AI is already influencing how central bankers think about policy.
The dollar index formed a doji after rebounding from its 101.59 lower Bollinger, though a turn lower in one-month risk reversals points to growing downside bias.
EUR/USD slid to 1.1137 amid risk-off dollar demand and remains bearish below its 10- and 21-DMAs and 1.1172 resistance.
GBP/USD edged higher and remains constructive near its 100-day moving average, supported by expectations of a BOE rate hike next week.
AUD/USD formed a doji above 0.7000 after a brief dip to 0.7014, maintaining a constructive tone while holding above its 10- and 21-DMAs.
USD/JPY remained mildly bearish below its 21-DMA at 157.90 heading into next week's event risks, with support at the lower Bollinger at 156.95 ahead of its cloud bottom at 156.63 and resistance at 158.44 cloud top.
Treasury yields were down 3 to 9 basis points as the curve steepened. The 2s-10s curve was up about 1 basis point to +34.7bp.
The S&P 500 fell 2.4% as weakness in tech weighed.
WTI oil rose about 2% to over $104/bbl.
Gold slumped 3.4% to a new YTD low while copper fell about 2.3%.
Heading toward the close: EUR/USD -0.09%, USD/JPY -0.25%, GBP/USD +0.15%, AUD/USD +0.03%, DXY -0.17%, EUR/JPY -0.33%, GBP/JPY -0.10%, AUD/JPY -0.19%.(Editing by Burton Frierson Robert Fullem is a Reuters market analyst. The views expressed are his own)
