US Stocks plunged on Friday, as investors reacted to a weak July jobs report and a fresh round of tariffs announced by President Trump. The S&P 500 and Nasdaq fell 1.6% and 2.2%, their steepest drops since April, while the Dow lost 542 points. Payrolls rose by just 73,000 in July, far below expectations, with sharp downward revisions to prior months signaling deeper labor market weakness. Treasury yields fell and the odds of a September Fed rate cut rose above 80%. Sentiment worsened after new tariffs of 10% to 41% were imposed on imports from key partners including Canada, India, and...
The dollar index edged above 107 on Monday, hitting a three-week high, as traders awaited the Fed's interest rate decision and assessed key economic data. The Fed is widely expected to cut the federal funds rate by another 25 basis points, but investors will be closely monitoring the latest economic projections, particularly the prospect of rate cuts by 2025, with markets currently pricing in just three cuts. On the data front, the S&P Global Flash PMI showed surprisingly strong growth in private sector activity this month led by a surge in services while the manufacturing downturn...
Gold (XAU/USD) started the week on a relatively positive note, with the US dollar (USD) weighed down by a slight decline in US Treasury yields and weaker-than-expected US manufacturing figures. However, the precious metal remains close to recent lows after a 2.5% sell-off late last week. US Treasury yields fell on Monday after a sharp rally last week, taking some of the recent bullish pressure off the US dollar. Investors appear cautious about placing directional US dollar bets as they prepare for the all-important Federal Reserve (Fed) monetary policy decision on Wednesday. The market is...
Crude Oil is testing vital support around $70.00, after selling pressure emerged on the back of Chinese Retail Sales data for November which dampened hopes for a speedy recovery in the region. The 3% growth was far below consensus and the situation is set to deteriorate further as tanker rates on key routes to China are falling to the lowest level this year, pointing to even more sluggish demand ahead. Source: FXStreet
Silver Prices (XAG/USD) are trading in a mild positive bias on Monday, trimming some losses after the rejection from levels above $32.00 last week. A mild retreat in US Treasury yields is supporting precious metals on Monday but the overall picture shows the pair vulnerable. The daily chart reveals a sharp reversal pattern last week, which triggered a more than 4% sell-off in the last half of the week. Upside attempts are looking feeble so far, with previous support at $30.85 likely to challenge bulls. Source: Fxstreet
EUR/USD surrendered intraday gains and returned below the psychological 1.0500 level in the European session on Monday as a large number of European Central Bank (ECB) policymakers, including President Christine Lagarde, have supported further policy easing and a gradual move towards the neutral interest rate, which they expect to be around 2%. "Will cut interest rates further if incoming data confirm that disinflation is on track," Lagarde said at the Annual Economic Conference in the European session on Monday. Lagarde's dovish remarks on the policy outlook were supported by the...