In the closing days of the quarter, the US dollar made a surprising recovery, regaining losses from earlier trading sessions and even reaching new highs. This sudden strength was particularly noticeable in USD/CAD, which surged as oil prices reversed their gains. Treasury yields also rebounded after an initial decline, impacting equity markets that ended the week with little change after a strong start. However, these market movements were driven more by quarter-end flows than by underlying fundamentals, as softer inflation numbers in the PCE report and a dovish tilt from Williams influenced sentiment. As a result, gold prices plummeted once again, hitting their lowest level since mid-March.
Despite starting off weaker during North American trading, the US dollar eventually rallied strongly and saw broad gains, ultimately ending the day with minimal changes. With the conclusion of the week, month, and quarter, traders are now looking ahead to October and analyzing seasonal trends.