Why the Fed replaced the Treasury buyers who left
The most discussed piece of central bank plumbing of the past month is a facility that has never been used.

The most discussed piece of central bank plumbing of the past month is a facility that has never been used.
The EUR/USD pair settled in the 1.1580 area marginally higher in the week, yet unable to find a clear path. The pair holds near its August peak at 1.1581, as demand for the US Dollar (USD) remains subdued amid poor employment figures and steady inflation.
After posting its largest one-week gain since January in the first week of August, Gold (XAU/USD) extended its rally and touched a fresh two-month peak near $4,450 as markets continued to scale back bets for a Federal Reserve (Fed) interest rate hike in September.
Gold is testing the $4,300 level as the corrective downside extends into a second day early Friday. Traders remain focused on Middle East developments, Oil price action, and US Federal Reserve (Fed) interest rate expectations before placing fresh positional bets.
Forecasts put global artificial intelligence (AI) related debt issuance near $570 billion this year, with roughly $236 billion of it priced by the end of May at four times the prior year’s pace.
Directional bias: while above the 200-day SMA around 0.6930, spot should maintain the neutral-to-bullish stance, although a persistent inability to advance north of 0.7000 leaves spot exposed to a correction.