The US Baker Hughes oil rig count was recorded at 411, falling short of forecasts set at 412. The slight discrepancy came amid a range of economic events and analyses reported by FXStreet.
EUR/USD continued its downtrend, slipping below 1.1900 due to US Dollar strength. The currency’s movements were impacted by Kevin Warsh being named as Jerome Powell’s successor and unexpected rises in US Producer Prices.
Gbp Usd Trend
GBP/USD faced selling pressure, dropping to around 1.3720-1.3710, influenced by developments in US monetary policy. Meanwhile, gold experienced a dip, hovering near $5,000 due to broader profit-taking and a stronger US Dollar.
Stellar saw a drop to a three-month low below $0.20, driven by bearish sentiment and weakening technical indicators. Microsoft experienced a sell-off, creating a $400 billion decrease in market value, pulling indices downwards.
Bitcoin, Ethereum, and Ripple saw weekly losses of nearly 6%, 3%, and 5%, respectively. Bitcoin moved closer to November lows of $80,000, while Ethereum dropped below $2,800, amidst intensified selling momentum in the market.
The new Federal Reserve leadership announcement, combined with recent inflation data, is driving a powerful dollar rally. We see the Dollar Index (DXY) has surged past 105.50, its highest level since late 2024. Traders should consider using options to bet on further dollar strength against currencies like the Euro and the Pound.
Equities And Technology Sector
This hawkish shift is creating significant headwinds for equities, particularly in the rate-sensitive technology sector. The CBOE Volatility Index (VIX) has jumped above 25, reflecting the rising uncertainty in the market since the Fed leadership announcement. Buying put options on tech-heavy indices like the Nasdaq 100 could be a way to speculate on further downside.
The slight dip in the Baker Hughes oil rig count to 411 is unlikely to support oil prices in the face of the dollar’s strength. Looking back at 2025, we saw that rig counts were largely stable, meaning this small change is overshadowed by macroeconomic factors. Any short-term rallies in crude oil may present opportunities to initiate short positions via futures contracts.
The risk-off mood is hitting speculative assets like Bitcoin and Ethereum the hardest, pushing them toward their November lows. Derivative data shows funding rates for perpetual swaps have turned sharply negative, suggesting traders are paying a premium to bet on lower prices. This environment favors short-side strategies or buying protective puts on major cryptocurrencies.
Gold is also struggling, as a hawkish Fed and a strong dollar diminish the appeal of the non-yielding metal. We saw a similar dynamic back in 2022 when aggressive Fed tightening pushed gold down despite high inflation. Shorting gold futures or buying puts could be effective until this strong dollar trend shows signs of reversing.
