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 held below 106 on Friday, following a decline in the previous session, as investors braced for a key jobs report that could influence the Federal Reserve's decision on interest rates in December. The November nonfarm payrolls report is expected to show a gain of 200,000 jobs, with a weaker-than-expected number potentially fueling speculation of a rate cut. Meanwhile, data released on Thursday showed that initial jobless claims rose more than anticipated, hitting 224,000, signaling a potential cooling in the labor market. Markets are now pricing in a 71% chance of a 25...
The Australian dollar (AUD) weakened on Friday. Disappointing economic growth could prompt the Reserve Bank of Australia (RBA) to adopt a more dovish stance at its monetary policy meeting next week, potentially setting up an interest rate cut in February. This, in turn, exerts selling pressure on the Aussie. Traders will be closely watching the November US jobs report, including Nonfarm Payrolls (NFP), Unemployment Rate, and Average Hourly Earnings. The US economy is expected to add 200,000 jobs in November after rising 12,000 in October. A weaker-than-expected reading could drag the...
EUR/USD strengthened on Thursday, rising seven-tenths of a percent and re-approaching the 1.0600 level. European Retail Sales beat market median estimates in October, but were still down from the previous month. The European Central Bank (ECB) is widely expected to cut interest rates by a quarter point next week, and market sentiment is tilted toward risk ahead of Friday's US Nonfarm Payrolls (NFP) data. Source: FXStreet
Oil prices fell on Thursday as investors weighed an ample supply outlook for next year against OPEC+ delaying its planned output increase by three months to April 2025. Brent crude settled down 22 cents, or 0.3%, at $72.09 a barrel, while U.S. West Texas Intermediate (WTI) settled down 24 cents, or 0.35%, at $68.30 a barrel. OPEC+, the Organization of the Petroleum Exporting Countries plus allies including Russia, had been planning to start unwinding cuts from October 2024, but slowing global demand and booming production outside of the group forced it to postpone the plans on several...
Gold traded lower mid-afternoon on Thursday, moving down even as the dollar weakened following an unexpected jump in U.S. initial jobless claims last week. Gold for February delivery was last seen down US$28.10 to US$2,648.10 per ounce. The U.S. Department of Labor reported 224,000 initial jobless claims were made last week, above the consensus estimate and prior week level of 215,000, according to Marketwatch. The results follows on a weaker than expected rise in private sector employment in November, with the ADP Employment Report released Wednesday showing a rise of 146,000 positions,...