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The US Dollar Index (DXY) fell below the 100.00 region after sinking through Friday’s session. July Nonfarm Payrolls (NFP) showed the US economy shedding 23K jobs against forecasts of an 80K gain, with June revised down to 20K, and Average Hourly Earnings slowing to 3.2% on the year. Markets that had spent late July pricing a hawkish Federal Reserve (Fed) reversed course in the morning. This coming Wednesday’s Consumer Price Index (CPI), projected at 3.4% YoY headline and 2.5% YoY on the core measure, now decides whether that repricing extends or stalls. Two Fed speakers follow on Thursday, with Hammack…
US Treasury yields drop across the curve on Friday amid growing speculation that the Iran-Oman deal is about to be sealed, which has so far pushed energy prices lower, while investors also digest a weak Nonfarm Payrolls report in the US.Yields slide across the curve as Oil declines, payrolls disappoint and traders price out September Fed tighteningRecently, a US official said that there has been progress between Oman and Iran on Hormuz, and that once a deal is announced to restore shipping without impediments, the US Navy will lift the blockade of Iranian ports.West Texas Intermediate (WTI), the US crude…
Commerzbank’s FX analysts, including Charlie Lay and Moses Lim, note that USD/IDR slipped slightly but stayed below the key 18,000 level as softer global Oil prices and stronger Indonesia Q2 GDP supported the Rupiah. They highlight that clearer Bank Indonesia leadership and confidence in BI’s independence should aid IDR over the coming weeks, though several structural and geopolitical risks may limit further appreciation.Rupiah supported but upside constrained”Q2 GDP rose more than expected by 5.3% yoy (Bloomberg consensus: 5.1%) vs 5.6% in Q1. Growth was supported by resilient domestic demand, particularly stronger investment activity, while household consumption and government spending remained…
Silver price surges nearly 3% as it clears the 50-day Simple Moving Average (SMA) at $62.13, and reclaims the $63.00 figure as it struggles to surpass key resistance seen at $63.28, the July 6 high.XAG/USD Price Forecast: Technical outlookSilver trades sideways, but bulls are gaining traction, as indicated by the Relative Strength Index (RSI). The RSI crossed above its 50-neutral level, poised to hit the overbought 70 level, rather sooner than later. This suggests that the white metal could test higher prices, once it crosses the $65.00 mark. A breach of the latter will expose the 100-day SMA at $68.98, before…
EUR/JPY trades on the back foot on Friday, easing away even as the Euro (EUR) posts solid gains against the US Dollar (USD). The Japanese currency surged suddenly near the start of the American session after a surprisingly weak United States (US) employment report. But the cross recovered much of those losses fairly quickly.Japan and the United States conducted coordinated Yen-buying intervention last Friday, a rare bilateral action, and that memory is enough to make traders reluctant to sell the Yen into a US Dollar that fell over 1% against the Yen during the early American session on Friday. The…
NZD/USD trades around 0.5890 on Friday at the time of writing, up 0.36% on the day. The pair is benefiting from a sharp decline in the US Dollar (USD) following a much weaker-than-expected US employment report, while the Reserve Bank of New Zealand’s (RBNZ) hawkish stance continues to support the New Zealand Dollar (NZD).Data released by the Bureau of Labor Statistics (BLS) showed that US Nonfarm Payrolls (NFP) fell by 23K in July, compared with market expectations for an increase of 80K jobs. Previous months were also revised sharply lower, with June payrolls revised down from 57K to 20K and…
The Indian rupee ended little changed on Friday and firmed modestly week-on-week as central bank intervention blunted pressure from higher oil prices, which added to traders’ caution heading into a key U.S. labour market report.The rupee closed at 95.2075 per dollar, barely changed from its close at 95.22 in the previous session, but up about 0.2% week-on-week.Oil prices rose 0.3% to $82.7 on Friday on concerns surrounding the reopening of the Strait of Hormuz and potential Iranian bans and fines on vessels it deems hostile or in violation of proposed rules.Uncertainty over the Middle East conflict remains a key overhang…
The United States (US) Bureau of Labor Statistics (BLS) is set to release the Nonfarm Payrolls (NFP) data for July on Friday at 12:30 GMT. With investors scaling back bets for a Federal Reserve (Fed) interest rate hike in September on easing inflation fears, the underlying details of the employment report could influence how markets assess the US central bank’s policy outlook and drive the US Dollar’s (USD) valuation. What to expect from the Nonfarm Payrolls report?Investors expect NFP to rise by 80K following June’s disappointing print of 57K. The Unemployment Rate is seen holding steady at 4.2%, while the annual wage…
The rupee traded in a narrow range and depreciated 6 paise to 95.28 against the US dollar in early trade on Friday, tracking a firmer dollar and a rise in US treasury yields.Forex traders said dollar demand from importers and profit-taking after the rupee’s recent appreciation appear to have outweighed the favourable global backdrop.At the interbank foreign exchange market, the rupee opened at 95.27, then touched 95.28 against the American currency, registering a fall of 6 paise from its previous close.On Thursday, the rupee depreciated 14 paise to close at 95.22 against the US dollar.”With oil back near $83, the…
According to a report from The Guardian, Saudi Arabia aims to extend its military operations against Iran-aligned Houthis for attacking the Najran province, which is located in its southern region, and Yemeni government troops. It should be noted that Saudi Arabia is a supporter of the internationally recognized Yemeni government.In a separate attack early on Friday, a Saudi official accused the Houthis of indiscriminately shelling civilian areas in Saudi Arabia, injuring 11 civilians, including a four-year-old child. Maj General Turki al-Maliki, spokesperson for the Saudi-led military coalition supporting Yemen’s government, said the coalition would continue taking all necessary measures to…