A June jobs report that undershot expectations by nearly half sent the Dow Jones Industrial Average (DJIA) to a fresh intraday record on Thursday, which reads like a contradiction until you look at what actually moved.
BNY’s Geoff Yu notes that clients have largely capitulated on Japanese Yen (JPY) and South Korean Won (KRW) longs as these currencies stay weak versus US Dollar (USD) and Chinese Yuan (CNY).
The AUD/USD pair climbed near the 0.6930 area on Thursday as the US Dollar (USD) came under pressure following softer-than-expected United States (US) labor market data.
NZD/USD rises 0.59% on Thursday to trade around 0.5705 at the time of writing, supported by a sharp decline in the US Dollar (USD) following the release of a significantly weaker-than-expected US employment report.
The Pound Sterling (GBP) registers solid gains against the US Dollar (USD) on Thursday after the latest US employment report missed estimates, reducing the chances of a Federal Reserve (Fed) rate hike.
ING’s Carsten Brzeski analyses a new German government reform package focused on cutting red tape, increasing labour market flexibility, and capping healthcare and pension costs to restore competitiveness.
Silver (XAG/USD) climbs to the top of its weekly trading range on Thursday as the US Dollar (USD) slides to a two-week low after US Nonfarm Payrolls (NFP) data surprised to the downside. At the time of writing, XAG/USD trades around $61.15, up nearly 3.50% on the day.
Commerzbank’s Bernd Weidensteiner notes that weaker US employment data for June and downward revisions to prior months reduce pressure on the Federal Reserve to hike rates at the late-July meeting.
DBS Group Research economist Radhika Rao notes that Indonesia’s onshore FX and bond markets have stabilised following a correction in global Oil prices, though gains are modest.
USD/JPY falls 0.92% on Thursday and trades around 161.05 at the time of writing after a much weaker-than-expected US employment report weighs on the US Dollar (USD).
Gold (XAU/USD) trades on the front foot on Thursday as the US Dollar (USD) weakens amid rumors of a potential intervention by Tokyo after the Japanese Yen (JPY) hit a 40-year low earlier this week. The Greenback extended its losses following a weaker-than-expected US Nonfarm Payrolls (NFP) report.
The Euro (EUR) gains against the US Dollar (USD) on Thursday after weaker-than-expected US Nonfarm Payrolls (NFP) data reduced expectations of an imminent Federal Reserve (Fed) rate hike.
Bank of England (BoE) policymaker Catherine Mann said on Thursday that an “activist move” may be needed if inflation expectations and outcomes move unfavorably, according to a speech text released by the BoE ahead of an event hosted by French bank Natixis.
UOB economists Enrico Tanuwidjaja and Sathit Talaengsatya see Thailand’s 2Q26 starting stronger than feared, driven by exports and technology-linked investment, but with domestic demand still weak.
Rabobank strategist Michael Every highlights how Fed Chair Warsh and other major central bankers at Sintra are signalling a structural shift away from traditional forward guidance towards data-driven “framework guidance.” Every stresses that evolving AI, new inflation measures and reduced public tou
Societe Generale’s Dev Ashish argues that the US decision to opt for annual USMCA reviews instead of a 16-year extension prolongs policy uncertainty for Mexico while leaving near-term trade flows intact.
Geoff Yu reports that the RBNZ will keep its Monetary Policy Committee at six members ahead of the November election, after a split 3-3 vote in May where external members backed a hike.
USD/CAD falls to 1.4180 on Thursday, down 0.26% on the day after dropping to 1.4150, its lowest level in more than a week, following a much weaker-than-expected US employment report.
Commerzbank’s Bernd Weidensteiner highlights that US nonfarm payrolls rose only 57,000 in June, far below consensus, with prior months revised down by 74,000. Monthly job growth has been slowing and the six-month average is expected to turn lower.
ING strategists Benjamin Schroeder and Michiel Tukker discuss how a potential increase in the Minimum Reserve Requirement (MRR) by the ECB could tighten Eurozone liquidity and reduce ECB losses.
USD/CHF weakens sharply on Thursday as the US Dollar (USD) comes under broad selling pressure following a weaker-than-expected US Nonfarm Payrolls (NFP) report. At the time of writing, the pair is trading around 0.8029, its lowest level since June 18, down nearly 0.80% on the day.
While speaking at a Banco de España conference in Santander, Spain, San Francisco Federal Reserve President Mary Daly said that she doesn't see any signs of a lack of economic resiliency in the US, despite above-target inflation, per Reuters.
Commerzbank’s Dr. Ralph Solveen reviews Germany’s new reform package agreed by CDU/CSU and SPD, focusing on bureaucracy reduction, labor market changes, and modest tax adjustments.
AUD/JPY declines by 0.61% on Thursday, trading around 111.40 at the time of writing.
According to a report from the US Department of Labour (DOL) released on Thursday, the number of US citizens submitting new applications for unemployment insurance shrank to 215K for the week ending June 27.
Nonfarm Payrolls (NFP) in the United States (US) rose by 57K in June, the US Bureau of Labor Statistics (BLS) reported on Thursday. This print followed the 129K increase (revised from 172K) recorded in May and fell short of the market expectation of 110K by a wide margin.
BNY's Geoff Yu highlights that Sintra offered limited clarity on Euro area growth, but an emerging split within the European Central Bank (ECB) over further tightening points to easier financial conditions.
MUFG’s Michael Wan notes the US Dollar strengthened as lower Eurozone CPI, comments from Kevin Warsh, and anticipation of US Non-Farm Payrolls supported the currency.
Dev Ashish at Societe Generale notes that MXN price action was relatively muted after the United States-Mexico-Canada Agreement (USMCA) extension decision, indicating investors largely expected the outcome.
GBP/JPY trades under pressure on Thursday as the Japanese Yen (JPY) strengthens across the board amid speculation that Japanese authorities may have intervened in the foreign exchange market after the Yen fell to a 40-year low against the US Dollar (USD) earlier this week.
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