This article has been translated from English to Gen Z Slang.
Yo, the markets were straight up L this Thursday as tech stocks took a nosedive 📉 'cause of worries over AI spendin' without the returns, plus beef with Iran got oil and gold popping off despite the Fed staying chill with their policy. 🤔
Missed all the forex tea? Check it, we got the latest updates from this trading sesh here for you! 💸
Forex News Headlines & Data:
- NZ Balance of Trade for Dec 2025: 0.05B (-0.18B forecast; -0.16B previous) 🚢
- NZ ANZ Biz Confidence for Jan 2026: 64.1 (73.9 forecast; 73.6 previous)
- UK Car Production for Dec 2025: 17.7% y/y (6.7% y/y forecast; -14.3% y/y previous) 🚙
- Aus Export Prices for Dec 31, 2025: 3.2% q/q (-0.5% q/q forecast; -0.9% q/q previous)
- Aus Import Prices for Dec 31, 2025: 0.9% q/q (0.5% q/q forecast; -0.4% q/q previous)
- Japan Consumer Confidence for Jan 2026: 37.9 (37.6 forecast; 37.2 previous)
- Swiss Balance of Trade for Dec 2025: 3.0B (3.8B forecast; 3.0B previous) 🧀
- Euro area M3 Money Supply for Dec 2025: 2.8% (3.0% forecast; 3.0% previous)
- Euro area Loans to Households for Dec 2025: 3.0% y/y (3.0% y/y forecast; 2.9% y/y previous)
- Euro area Economic Sentiment for Jan 2026: 99.4 (97.5 forecast; 96.7 previous) 💭
- Euro area Consumer Confidence for Jan 2026: -12.4 (-12.4 forecast; -13.1 previous)
- Euro area Consumer Inflation Expectations for Jan 2026: 24.1 (25.0 forecast; 26.7 previous)
- Canada Balance of Trade for Nov 2025: -2.2B (-0.6B forecast; -0.58B previous) 🍁
- Canada Avg Weekly Earnings for Nov 2025: 2.5% y/y (2.1% y/y forecast; 2.2% y/y previous)
- U.S. Unit Labor Costs for Sep 30, 2025: -1.9% (-1.9% forecast; 1.0% previous)
- U.S. Initial Jobless Claims for Jan 24, 2026: 209.0k (205.0k forecast; 200.0k previous)
- U.S. Balance of Trade for Nov 2025: -56.8B (-37.0B forecast; -29.4B previous)
- U.S. Factory Orders for Nov 2025: 2.7% m/m (1.4% m/m forecast; -1.3% m/m previous) 🏭
- U.S. Wholesale Inventories for Nov 2025: 0.2% m/m (0.1% m/m forecast; 0.2% m/m previous)
Broad Market Price Action:
Dollar Index, Gold, S&P 500, Oil, U.S. 10-yr Yield, Bitcoin Overlay – Chart Faster With TradingView
Thursday was all about that risk-off vibe with the stock market catching them red numbers 👀 concerns that throwing money at AI won't pay off kicked in while the geopolitical stuff propped up them commodities. 🚀
U.S. stocks took an L with the S&P 500 sliding 0.36% to close near 6,964 – that's two sessions down in a row! Nasdaq went down 1.6% since tech was takin' hits hard. Microsoft got nuked, dropping over 10% 'cause of slow cloud growth despite sky-high AI spendin', biggest flop since 2020. Tesla slipped 1.2% after breaking its revenue record – like not in a good way. Oracle ditched 3.1% after AI hype faded. Meanwhile, Meta was VIBIN' with a 9% jump 🙌 after killin' its sales goals, and IBM went up 7.4% with Caterpillar followin' suit up 4.1% thanks to banging earnings. All that sell-off was fueled by the realization that bank should've been on how to get returns from those billions put in AI, with peeps questioning if current evaluations really took monetization risks into account.🔥
WTI crude oil was on top, flexin' with a 3.06% spike to finish around $65.10 a barrel. This move was lit 🔥, fueled by Trump wildin' on Iran , hyping up sending a U.S. naval squadron to the Persian Gulf threatenin' strikes if Tehran doesn’t simmer on the nuclear non-proliferation beef. Brent crude hit over $70 too for the first time since September, got everyone shook about supply disruptions 'cause Iran pumps out more than 3 mil barrels on the daily, shipping loads to China. Geopolitical drama had oil markets poppin', drowning out any weak stock market vibes.
Gold dropped 0.54% to wrap around $5,370, takin’ a chill pill from pumpin’ highs near $5,600 after hitting new records. It had kicked up in Asian hours 'cause everyone was on edge about Iran and a weak dollar, but then folks started cashin’ in when London and U.S. came online. This pullback went down as traders were weighing if the drama justified keepin’ that bling at all-time highs, especially since the dollar was flexin' some resilience later on.
Bitcoin slumped 5.55% chillin' around $84,260, and was out of vibe with all the key assets in a heavy dip. The crypto dipped real steady from Asia through U.S. close without a clear reason to point at. The struggles came possibly from wider risk-off vibes in tech-adjacent stuff, with bitcoin trending alongside Nasdaq’s throwdown.
Treasury yields were off 0.33% to hover around 4.23% on the 10-year note. They stayed pretty flat in Asian and early London passes before droppin’ a tad in the U.S. afternoon, probs as a sheltering strategy ‘cause stocks were getting dunked on. The bonds didn’t react all that crazy despite the stock market L, signaling traders were still eyeing the Federal Reserve’s laidback vibe and weren’t sweatin' recession risks... yet. Plus, bond moves even when Trump mentioned thinkin' about nominin' a lay-back Fed Chair showed markets were sitting tight for real policy shifts instead of gettin’ shook by political noise.
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FX Market Behavior: U.S. Dollar vs. Majors
Overlay of USD vs. Majors – Chart Faster with TradingView
The U.S. dollar was swingin' hard on Thursday, eventually rollin' out as one of the weaker currencies even after some U-turns where it peeked to session highs during U.S. morning hustle.
During the Asian gang hangout, the dollar slid against the main currency cliques and found a floor just before London got in the mix. The losses were like, everywhere with no huge data headlines to point fingers at. This USD drop was probably cos’ of traders reshuffling after the Fed meetup on Wednesday where Powell marked a long pause on rate cuts despite some telling him to chill. Yen was flexin' in Asian hours, maybe cause people were all risk-off with downgraded stock talks.
The London grind had the dollar making a rebound lap, comeback trailin’ against peers through the AM before getting another dip pre-U.S. entry. Europe was a mixed bag economy-wise, but the euro area got a pleasant surprise with the economy vibe at 99.4 compared to the expected 97.5, while inflation expectations tanked more than anticipated to 24.1 from 26.7 before. The better vibe felt like low-key support for the euro, not letting the dollar chase glory. UK car figures shot back impressively, though it didn't make London busier. The dollar fightback through London vibes seemed driven by wrapping positions ahead of American econ releases rather than some defined driver.
The U.S. worksession started with the dollar barely bobbin’ before a surprise pop just after U.S. shares clocked in around 9:30 am ET. But that "zoom" didn't stick, as it got capped then dragged down in the afternoon. Morning U.S. data had jobless claims rising to 209k from an expected 205k, plus the trade deficit straight skyrocketing to $56.8B versus the predicted $37B, kaya doubled from October's revised sheet. The trade gap's fireworks pointed to Trump tariffs sparkles like crazy. Even though weaker trade goods normally slash the dollar, greenback's stamina inside the day seemed like refuge as tech stocks burned. But its swag fizzled fast when Trump’s Iran beef boosted commodity currencies, while chill vibes favored the yen and franc.
When the day wrapped, the U.S. dollar was dragging, one of worst performers following that choppy, hectic, and borderline stagnant session. Its struggles to capture equity market weakness and wider trade data cried out that dovish Fed mumbles, Trump's rate-cutting Chair hints, and political jitters outweighed some safe dollars demand.
Upcoming Potential Catalysts on the Economic Calendar
- Japan Tokyo CPI for January 2026 at 11:30 pm GMT 🚦
- Japan Unemployment Rate for December 2025 at 11:30 pm GMT
- Japan Industrial Production Prel for December 2025 at 11:50 pm GMT
- Japan Retail Sales for December 2025 at 11:50 pm GMT
- Australia Private Sector & Housing Credit for December 2025 at 12:30 am GMT
- Australia PPI for December 31, 2025 at 12:30 am GMT
- Japan Housing Starts for December 2025 at 5:00 am GMT 🏠
- France GDP Growth RatePrel for December 31, 2025 at 6:30 am GMT
- U.K. Nationwide Housing Prices for January 2026 at 7:00 am GMT
- Swiss KOF Leading Indicators for January 2026 at 8:00 am GMT
- Germany Unemployment Rate for January 2026 at 8:55 am GMT 👔
- Germany GDP Growth Rate Flash for December 31, 2025 at 9:00 am GMT
- U.K. Monetary Developments for December 2025 at 9:30 am GMT
- Euro area Unemployment Rate for December 2025 at 10:00 am GMT
- Euro area GDP Growth Rate Flash for December 31, 2025 at 10:00 am GMT
- Germany CPI Growth Rate Prel for January 2026 at 1:00 pm GMT 🏦
Friday’s line-up looks stacked with some major European GDP rolls for Q4, offering prime views on if the region’s econ was vibin’ into the yr end. Germany’s read deserves even more eagle-eyed attention with recent manufacturing survey dark clouds, any miss here could weigh heavy on the euro and feed the ECB doves.
UK house dollars data via Nationwide might move the ball on BOE rate cuts 'xpectations, especially post-recent soft inflation drops already pulling forward BOE easing bets. In Asia, Japan’s Tokyo CPI will get top-down inspection as a sneak peek into natty inflation, seeing if price pins hold tough enough to bolster Bank of Japan hawkish talk. Successive production doujin and sales sequel will work through economic momentum insights rolling into 2026. 📈
With U.S. lanes facing a chill data groove, attention might park back on Iran's geopolitical turbulence and more tea from Trump on his Fed vibes, as he broadcasted his Fed Chair pick drops next week. Xchange markets slowdance to shifts illuminating central bank policy platform endgames, particularly as Euro data could strengthen or shake the narrative of Fed staying more clutch than its 2026 main opponent acts.
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