Dollar Rebounds on Hawkish Fed; Gold, Silver Fall

Market Update: U.S. currency recovers despite weaker economic data, as Fed officials signal caution on further rate cuts

Published on Feb. 10, 2026

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The U.S. Dollar experienced a modest rebound on Tuesday, February 10, 2026, recovering from a one-week low despite weaker-than-expected economic data. This resilience highlights the complex interplay between economic indicators, Federal Reserve policy, and global currency dynamics.

Why it matters

The dollar's performance reflects the ongoing influence of the Federal Reserve's monetary policy stance on global currency markets. Hawkish comments from Fed officials suggesting a cautious approach to further rate cuts helped bolster the dollar, even as recent economic data pointed to potential weakness.

The details

Hawkish comments from Cleveland Fed President Beth Hammack and Dallas Fed President Lorie Logan signaled that the Fed could remain on hold 'for quite some time' and that 'material' weakness in the US labor market would be required before they would support further interest rate cuts. This contrasted with earlier expectations of potential rate cuts fueled by disappointing retail sales and employment cost figures. Meanwhile, the Chinese yuan reached a 2.5-year high against the dollar, adding to the pressure on the U.S. currency. The Euro also fell against the dollar, influenced by both the greenback's rebound and a dovish statement from the European Central Bank.

  • On Tuesday, February 10, 2026, the U.S. Dollar index (DXY00) finished up 0.01%.
  • In January 2026, Japanese machine tool orders increased by 25.3% year-on-year, the largest increase in 3.75 years.

The players

Beth Hammack

President of the Cleveland Federal Reserve.

Lorie Logan

President of the Dallas Federal Reserve.

Luis de Guindos

Vice President of the European Central Bank.

Takaichi

Prime Minister of Japan.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.