US 10-Year Treasury Yield at 6% Emerges as New Market Risk Threshold 
Trump, Xi Focus on Trade and AI at White House Summit 
Japanese Yen Rebounds as Trump Flags Currency Weakness 
Dollar Falls as Oil Eases, Yen Jumps on Intervention Signals 
US Stock Futures Fall as Treasury Yields Surge Ahead of Trump-Xi Summit 
Asian Stocks Fall as Bond Yields Surge Ahead of Trump-Xi Summit 
Canadian Dollar Faces Pressure as Fed-BoC Policy Gap Widens 
Oil Prices Ease as Iran Tensions Clash With Diplomacy Hopes 
Dollar Holds Near Two-Month High as Yen Approaches 160 
Asian Currencies Mixed as Dollar Holds Near Two-Month High 
Oil Prices Fall on U.S.-Iran Hormuz Deal Hopes 
Fed’s Hammack Says Bond Yield Surge Is Not Driven by Inflation Fears 
US Comfortable With Canada Trade Standoff as Import Bans Loom 
Australia Unemployment Hits Five-Year High Despite Strong Jobs Growth 
U.S. Dollar Hits Two-Month High as Oil, Treasury Yields Surge 
European Stocks Fall as Bond Yields and Geopolitical Risks Weigh 
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The U.S. dollar weakened on Thursday after the Federal Reserve struck a less-hawkish tone than investors anticipated, prompting traders to increase bets on further rate cuts in 2025. While the Fed lowered interest rates by 25 basis points as expected, Chair Jerome Powell’s comments during the post-meeting press conference signaled a more dovish outlook, surprising market participants who were positioned for a firmer stance on inflation.
Analysts noted a clear shift in tone compared to the Fed’s October meeting. Nick Rees, head of macro research at Monex Europe, said the commentary leaned “dovish,” encouraging investors to short the dollar. As selling pressure increased, the euro climbed above the key $1.17 threshold, touching $1.1705—its strongest level in nearly two months. Sterling also gained, reaching $1.3391, and the Japanese yen strengthened 0.25% to 155.64 per dollar, recovering slightly from recent weakness driven by wide interest-rate differentials.
The dollar index fell to 98.543, its lowest since late October, reflecting broad softness across currency markets. Tony Sycamore of IG said traders had expected the Fed to repeat the hawkish tone from October but instead received signals that support risk-asset rallies into year-end.
Market sentiment now leans toward two additional rate cuts next year, exceeding the Fed’s own projection of just one. The central bank also announced it will begin purchasing short-dated Treasury bills starting December 12, with an initial round of roughly $40 billion aimed at supporting market liquidity. The move boosted bond markets, pushing the two-year Treasury yield down to 3.5340% and the 10-year yield to 4.1332%.
Analysts at Societe Generale said the earlier-than-expected T-bill purchases helped spark a rally led by short-term Treasuries. In commodity-linked currencies, the Australian dollar eased to $0.66665, while the New Zealand dollar slipped to $0.5812 after recent highs.
This shift in Fed policy expectations continues to shape global currency flows and investor positioning as markets look ahead to 2025.
