Both the Nasdaq and S&P indices are settling with nearly identical gains of around 0.45% on the day.
Source: Finnhub
AUD/USD is the standout performer across the majors on Friday, with the Australian dollar advancing 0.86% against the greenback to reach 0.7178, its highest level since early June. The Aussie leads all major currencies versus the USD in the session, extending a recovery that began after the pair carved out its weekly low on Wednesday following choppy two-way trade through the first half of the week. The move reflects broad-based US dollar softness as traders reassess the US rate outlook and Treasury market dynamics, with risk-sensitive currencies such as the AUD the primary beneficiaries. Technically, the next upside objective sits at the swing area between 0.71993 and 0.7200, a confluence zone that combines a prior swing level with a round-number magnet. A sustained break above 0.7200 would open the door to further extension, while failure there risks a pullback toward this week's midweek low. Traders should note that momentum remains constructive while price holds above the Wednesday base, keeping the near-term bias tilted to the upside.
AUDUSD
Sentiment:
Very Positive
Source: Finnhub
The euro found modest fundamental support after the European Commission's flash consumer confidence indicator for August printed at -15.5, comfortably better than the -16.3 consensus and an improvement on the prior month's -15.9 reading. The beat marks a second consecutive month of improving household sentiment across the euro area, suggesting consumers are becoming less pessimistic about the economic outlook despite still-negative absolute levels. The Directorate-General for Economic and Financial Affairs publishes this flash estimate monthly ahead of the full Business and Consumer Survey at month-end, and the data feeds directly into ECB assessments of domestic demand and the consumption channel of monetary policy transmission. A firmer consumer backdrop reduces the urgency for additional ECB easing, which is marginally supportive for EUR/USD and EUR crosses. That said, the magnitude of the surprise is small and unlikely to shift rate expectations on its own. Traders will look to the final survey release, alongside upcoming inflation and PMI data, for confirmation that euro-area demand is stabilising before pricing a more durable euro recovery.
EURUSD
EURGBP
EURJPY
Sentiment:
Positive
Source: Finnhub
Global markets traded with a cautious tone as investors weighed unresolved US policy and geopolitical tensions against ongoing speculation about the impact of the US Treasury's decision to double its long-dated bond buyback programme. The buyback expansion, flagged by Treasury Secretary Bessent as potentially exceeding $4 billion, has kept long-end yields volatile and left FX markets without a clear directional driver. Risk appetite remained subdued across equities, while the US dollar held broadly steady against the majors as traders avoided fresh positioning ahead of clarity on the Treasury's issuance and buyback strategy. Safe-haven demand offered intermittent support to the JPY and CHF, while commodity-linked currencies such as the AUD and CAD tracked shifts in broader risk sentiment. With no tier-one data catalyst immediately ahead, near-term FX direction is likely to follow the US yield curve: a renewed rise in long-end yields would favour the dollar, while a successful buyback-driven compression in term premium would weigh on it. Traders should expect range-bound conditions with elevated headline sensitivity.
EURUSD
USDJPY
GBPUSD
USDCHF
AUDUSD
USDCAD
Sentiment:
Neutral
Source: Marketaux
Analysis of the US dollar's response to the Treasury's expanded long-dated bond buyback argues that markets are trading the signal rather than the headline size of the operation. Prices move on expectations, and the announcement that the buyback could exceed $4 billion mattered less for its absolute scale — small relative to overall Treasury issuance — than for what it implied about the Treasury's willingness to intervene at the long end to cap yields. The reflexivity dynamic reinforces this: if participants believe an implicit yield ceiling exists, positioning shifts to make that outcome more likely, compressing term premium and softening the dollar. The initial reaction saw long-end yields fall and USD pairs reprice accordingly, though much of that move has since been retraced. For FX traders, the practical implication is that USD/JPY and EUR/USD remain highly sensitive to Treasury commentary rather than the operational details of each buyback. Confirmation of the Treasury's intent would extend dollar weakness, while any walk-back of the guidance risks a sharp yield-led dollar recovery.
USDJPY
EURUSD
GBPUSD
Sentiment:
Neutral
Source: Finnhub
US long-term Treasury yields have bounced back through the second half of the week, erasing much of the decline triggered by the Treasury's announcement that its long-dated bond buyback could exceed $4 billion. Treasury Secretary Bessent's guidance initially compressed the long end and pressured the dollar, but the rebound in yields is now testing the credibility of what markets have dubbed the "Bessent put" — the assumption of an implicit official backstop against a disorderly rise in borrowing costs. The dynamic mirrors previous episodes where verbal intervention delivered only a temporary yield reprieve before market forces reasserted themselves. For FX, the yield rebound is broadly dollar-supportive, particularly against low-yielding currencies, keeping USD/JPY biased higher while capping EUR/USD upside. Traders should watch whether long-end yields reclaim their pre-announcement highs, which would signal the market is willing to challenge the Treasury's resolve and could trigger fresh dollar strength. Conversely, follow-through action or firmer verbal guidance from the Treasury would likely cap yields and renew downward pressure on the greenback.
USDJPY
EURUSD
GBPUSD
AUDUSD
Sentiment:
Positive
Source: Finnhub
The yen firmed against the dollar after Japan's August flash PMI data showed the fastest pace of private sector expansion since February, keeping USD/JPY capped in the mid-147s during early Asian trade. The composite reading was lifted by manufacturing, where output growth accelerated and factories returned to expansion territory, joining a still-resilient services sector. Crucially for policymakers, selling price inflation ran close to record highs while employment continued to rise, reinforcing the view that cost pass-through and wage momentum remain intact. That combination strengthens the case for the Bank of Japan to deliver a rate hike at its September meeting, with swaps markets already pricing a meaningful probability of a move. A hawkish BoJ narrative narrows the US-Japan yield differential that has underpinned USD/JPY, and also lends support to EUR/JPY and GBP/JPY downside. Technically, USD/JPY faces initial support near 146.80 and the 200-day moving average around 146.00, while resistance sits at 148.50 ahead of the 149.00 handle. Traders should watch Tokyo CPI and BoJ commentary for confirmation before extending yen longs.
USDJPY
EURJPY
GBPJPY
AUDJPY
Sentiment:
Negative
Source: Finnhub
