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Hawkish Fed Repricing Hits Non-Yielders Hard

The repricing pushed US two-year yields to 5% and drove the Dollar Index to a 2026 high, while gold and Bitcoin fell sharply.

Reported · Written up by our desk · Major Pairs

Action Forex reports that last week’s hawkish Fed repricing, not a flight from risk, drove US Treasury yields and the Dollar higher while hitting non-yielding assets like gold and Bitcoin, with US equities rising and volatility declining.

Markets entered the week pricing roughly two additional quarter-point Fed hikes through 2027 but ended it anticipating nearly four, driven by Fed Governor Christopher Waller’s warning and an October CPI report meeting his threshold for further tightening.

The technical picture underscores urgency: US two-year yields are approaching 5%, the Dollar Index has broken above resistance, gold is threatening a breakdown below 3,870, and Bitcoin has breached a major retracement level.

These shifts reflect a substantial reassessment of interest rate expectations, with the coming week’s focus on whether the Fed can justify the additional tightening already priced into markets.

Latest closeGold $3,886.30 ▲0.0%|Bitcoin $67,199.04 ▼1.5%|Dollar index 103.41 ▲0.2%

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