The Bloomberg Dollar Spot Index fell 0.3%, leaving the dollar on track for its worst year since 2017. The euro rose 0.1% to $1.1778, while sterling climbed 0.2% to $1.3484 and traded near $1.35. In Japan, the yen strengthened 0.5% to 156.30 per dollar after official comments warned against relocates that diverge from fundamentals.
In Europe, government bonds firmed as yields eased. Germany’s 10-year yield fell four basis points to 2.86%, and the UK 10-year yield declined three basis points to 4.51%. US long-conclude rates stayed steady, with the 30-year yield little modifyd at 4.83%.
Money markets pared back expectations for early 2026 easing. Pricing implied less than a 20% chance of a Fed cut in January. Investors also added new short positions across futures last week, leaving net positioning near neutral.
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