The US Baker Hughes oil rig count was at 411, missing the forecast of 412. This small difference happened alongside various economic events, as reported by FXStreet. EUR/USD continued to decline, dropping below 1.1900 due to a stronger US Dollar. This move was influenced by Kevin Warsh’s appointment as Jerome Powell’s successor and unexpected increases in US Producer Prices.

Gbp Usd Trend

GBP/USD faced selling pressure and fell to about 1.3720-1.3710, affected by changes in US monetary policy. Meanwhile, gold dipped to around $5,000 as profit-taking occurred and the US Dollar strengthened. Stellar dropped to a three-month low under $0.20, driven by negative sentiment and weaker technical indicators. Microsoft faced a sell-off, resulting in a $400 billion decrease in market value, which pulled down market indices. Bitcoin, Ethereum, and Ripple posted weekly losses of nearly 6%, 3%, and 5%, respectively. Bitcoin approached its November low of $80,000, while Ethereum fell below $2,800 as selling pressure increased. The new Federal Reserve leadership and recent inflation data are fueling a dollar rally. The Dollar Index (DXY) soared past 105.50, its highest since late 2024. Traders might consider using options to capitalize on further dollar strength against currencies like the Euro and the Pound.

Equities And Technology Sector

This shift towards a stronger dollar poses challenges for equities, especially in the sensitive technology sector. The CBOE Volatility Index (VIX) has risen above 25, showing increased market uncertainty since the Fed’s leadership announcement. Buying put options on tech-heavy indices like the Nasdaq 100 could be a way to bet on potential declines. The slight decrease in the Baker Hughes oil rig count won’t likely boost oil prices as the dollar remains strong. In 2025, rig counts were relatively stable, making this small change less significant against broader economic trends. Any short-term rebounds in crude oil could provide chances to take short positions with futures contracts. The risk-off sentiment is severely affecting speculative assets like Bitcoin and Ethereum, pushing them toward their November lows. Derivative data indicates negative funding rates for perpetual swaps, meaning traders are paying extra to bet on lower prices. This situation favors short strategies or buying protective puts on major cryptocurrencies. Gold is also struggling as the hawkish Fed and a strong dollar lower its appeal. We experienced a similar situation in 2022 when aggressive Fed tightening pressured gold despite high inflation. Shorting gold futures or buying puts could be effective until the strong dollar trend shows signs of changing. Create your live VT Markets account and start trading now.

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