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 US Dollar (USD) rose sharply on Wednesday after former US President Donald Trump secured enough electoral votes to become the next US president. The former US President secured 277 votes, more than enough to surpass the magic 270 threshold needed to secure a majority. An additional element that may lead to more US Dollar strength is the fact that Republicans have secured a majority in the Senate. While the race for control of the US House of Representatives is still undecided, it seems that Trump will not be a powerless president and will have the support of both houses when it comes to...
Gold (XAU/USD) plunged below $2,700 on Wednesday as the US Dollar (USD) strengthened after Republican presidential nominee Donald Trump was declared the winner of the US presidential election. Trump won with 277 electoral votes over Vice President Kamala Harris' 224, according to the Associated Press. The USD strengthened on the market's view that Trump's economic and tariff agenda would strengthen the US Dollar. This, in turn, was negative for Gold as it is mostly priced and traded in USD. Gold also weakened as capital rotated out of Gold and other safe-haven assets into riskier assets...
The USD/JPY pair refreshes a four-month high near 154.40 in European trading hours on Wednesday. The asset strengthens as the US Dollar (USD) outperforms its rival currencies with the victory of Republican candidate Donald Trump in sight. The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, climbs above 105.00. According to the Associated Press, Donald Trump has already won three out of seven major battleground states of North Carolina, Pennsylvania, and Georgia and leading over Democratic rival Kamala Harris in the rest. Market experts see Trump's...
Silver (XAG/USD) price depreciated near $32.20 during the European session on Wednesday. The daily chart analysis suggests a potential shift in momentum from bullish to bearish, as the nine-day Exponential Moving Average (EMA) is aligning with the 14-day EMA. A downside crossover here would signal weakening near-term momentum. Furthermore, the 14-day Relative Strength Index (RSI) is consolidating just below the 50 level, indicating an ongoing bearish bias. However, traders would want to see further moves to get a clear trend direction for the XAG/USD pair. Furthermore, the Moving Average...
The reaction to the US election so far in the FX market has been, as expected, a strong dollar across the board. "There is no major divergence in the performance of G10 currencies, with daily losses totaling around 1.0-1.7% except for the Canadian dollar, which is down less than 1%. This reflects the view that a landslide Republican victory is positive for the US economy and, by extension, Canadian exporters, as well as the fact that the CAD will be less exposed to tariffs in China and geopolitical developments under a new Trump presidency." "The sharp rise and broad sell-off across the...