The US dollar came under heavy pressure after the US Treasury announced doubling the size of its buyback operations in long-term Treasuries from September onwards. Gold was one of the strongest beneficiaries of the move, gaining around 3.7% and breaking above $4,500. EURUSD rallied sharply, gaining around 0.8% and briefly reaching the 1.17000 area as the anti-dollar move gathered momentum. Bitcoin delivered the strongest reaction, gaining around 6.5% in a single session and approaching the $70,000 resistance.
- The US Treasury set the anti-dollar rally, with capital shifting rapidly towards major currencies and riskier assets.
- Yesterday’s surge also transformed the short-term technical picture for gold, quickly reversing the previous sell-off and putting $4,500 firmly back in focus.
- Importantly, EURUSD moved decisively through the entire 1.1600 corridor, a level that had repeatedly acted as resistance in recent sessions.
- The break above $69K in Bitcoin also added a technical element, forcing some short positions to unwind and accelerating the move.
FX Snapshot
XAUUSD
After a move of almost 4% in a single session, some profit-taking or consolidation would be entirely normal.
EURUSD
EURUSD remains constructive, but after a sharp one-day move, holding the breakout matters more than chasing the rally.
BTC
After a 6.5% daily surge, however, the risk of profit-taking is naturally elevated, making the market’s ability to hold the breakout particularly important.
Market tone
The US Treasury effectively changed the short-term market picture with a single announcement: long-dated Treasuries rallied, yields fell, USD weakened, while gold, the euro and Bitcoin surged. The expanded buyback operations are due to begin in September, meaning yesterday’s move was primarily a market repricing of future Treasury demand and conditions at the long end.
