A US Dollar and Metal domination –  Market wrap for the North American session

Log in to today’s North American session Market wrap for September 25

Today’s market was marked by a surprising disconnect.

Usually, when the US dollar strengthens, it puts downward pressure on commodities like metals.

However, with both the USD and precious metals rising significantly, the correlation is mixed up. This environment would be seen in risk-off markets but with bonds selling off harshly, the story isn’t just about this.

In a rare and ominous move, the US Secretary of War, Pete Hegseth, called for the assembly of all US Army generals across the world.

Overall, participants are still scratching their head to understand what is preparing but a significant geopolitical event may be on the horizon.

Unsurprisingly, this environment wasn’t supportive of Equities, marking another down day with significant losses across the board in the US and global stock markets.

The hardest-hit asset class was arguably cryptocurrencies which took a significant plunge, with Bitcoin going back below $110,000 and ETH dipping below $4,000.

The combination of a surging US dollar, which makes other assets and currencies less attractive, and the widespread flight from risk led to a massive sell-off in digital assets and other foreign exchange markets.