HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%
MultiBank Group information and reviews
MultiBank Group
84%

Dollar slides on jobs data, Euro dips on French gridlock


8 July 2024

US labor market shows signs of weakness

The US dollar fell against all but one of its major counterparts on Friday, with the only exception being the Canadian dollar.

Although Friday’s jobs data revealed that the economy added more jobs than expected in June, about three-quarters of that was government and healthcare services, with private payrolls coming in below estimates and corroborating the miss in Wednesday’s ADP report.

What’s more, the unemployment rate rose to a 2-1/2-year high of 4.1%, which combined with the slowdown in wage growth, added credence to investors’ belief that the Fed will proceed with two quarter-point rate cuts this year.

This week, attention is likely to turn to Fed Chair Powell’s testimony before Congress on Tuesday and Wednesday. Although he is unlikely to deviate much from what he said in Portugal last week, the Q&A session may include more targeted questions that result in more clarity regarding the Fed’s plans.

That said, what could prove a bigger determinant on whether market participants will maintain bets of two rate cuts this year may be the US CPI data on Thursday. A further slowdown in inflation may seal the deal in the eyes of investors and perhaps encourage some more dollar selling.

French election ends in deadlock

The euro opened the week with a negative gap after France’s legislative election pointed to a hung parliament. In a surprise showing, the leftist New Popular Front (NFP) alliance took first place, with Macron’s Ensemble coming in second, and Le Pen’s National Rally (RN) finishing last.

That said, the common currency traded higher soon after the opening, perhaps due to the greenback’s weakness and/or as market participants began digesting the idea that Le Pen’s far-right RN will not govern the nation.

Now, investors will have to be patient and wait to see whether there will be any talks between the NFP and Macron’s Ensemble to form a government. However, there are major differences separating the two alliances, which have no tradition of working together.

The leftists have already said they want to govern and if this is through a minority government, France’s role in the European Union is likely to weaken, while it will be hard for them to push through legislation domestically.

Fresh records on Wall Street, oil retreats on ceasefire hopes

All three of Wall Street’s main indices traded in the green on Friday, with both the S&P 500 and the Nasdaq hitting fresh record highs after the US employment report solidified expectations of two rate cuts by the Fed this year.

Gold also gained on Friday, briefly exceeding the high of June 6 at $2,388. However, the precious metal is pulling back today. Should Fed Chair Powell and the US CPI data this week add to the rate-cut narrative, the bulls are likely to recharge and perhaps start marching north again, towards the record high of around $2,450.

Oil did not take advantage of the weaker dollar, coming under some selling pressure on rising expectations of a ceasefire in the Middle East. A first round of talks was already held, and negotiations are expected to resume this week.

by XM.com

#source


RELATED

Geopolitics dictates market sentiment, but dollar fails to benefit

The markets reacted negatively to the perceived escalation and the aggressive rhetoric from both sides, with gold recording its best two-day rally since early March, when the markets were mentally preparing for the Fed rate easing cycle.

20 Nov 2024

Stocks cautiously edge up amid geopolitical and inflation risks

Equity markets were in a perky mood on Tuesday as a recovery on Wall Street helped Asian stock markets advance, although European shares were more mixed.

19 Nov 2024

US CPI report could reverse the post-election euphoria

President-elect Trump is gradually assembling his cabinet, with the market anticipating the most crucial appointment, the Treasury Secretary.

13 Nov 2024

Positive sentiment lingers despite mixed newsflow

The markets continue to digest Trump’s victory and last Thursday's Fed dovish rate cut, with most market participants now speculating on the course of action of the new administration as the president-elect is assembling his cabinet.

11 Nov 2024

Dollar pauses rally ahead of Fed, BoE meets as well

After hitting a four-month high on the heels of Donald Trump's return to the White House, the dollar is pulling back today, as traders may have decided to lock some profits after the sharp rally and ahead of the Fed decision later today.

7 Nov 2024

Dollar and stocks surge on Trump victory bets

The dollar skyrocketed during the Asian session today, and it appears to be headed for its biggest one-day gain since March 2020.

6 Nov 2024

Volatility returns with a vengeance ahead of key US events

The recent, relatively quiet, market sessions were interrupted yesterday, with a strong correction recorded in both equities and gold.

1 Nov 2024

Dollar maintains gains amidst fragile market conditions

Market participants are gradually preparing for an action-packed week, with Friday’s US jobs report being the key event, that also includes some major earnings releases. Alphabet will report today, followed by Microsoft and Meta tomorrow, and Amazon and Apple on Thursday.

29 Oct 2024

Tensions remain high in equities

The next Fed meeting will be held two days after the election date and, assuming an eventless election process occurs, Chairman Powell et al will evaluate the progress made since the September aggressive rate cut.

25 Oct 2024

Demand for safe assets lingers

The US dollar continues to enjoy strong demand, outperforming its main counterparts. In particular, euro/dollar is trading at the lowest level since early August, and dollar/yen is hovering a tad below the 151 area.

22 Oct 2024

Strong US data keep the dollar in demand

The euro suffered another weak session yesterday, with the euro/dollar pair dropping below the key 200-day simple moving average and euro/pound fully erasing the recent UK CPI-induced correction.

18 Oct 2024

US dollar and stock rally continues

Both the US dollar and main US equity indices enjoyed another strong session yesterday.

15 Oct 2024

Dollar baffled after mixed data and Fedspeak

China might have played a key role in gold’s performance, but, at the same time, it offers little assistance to the oil rally as the market remains very pessimistic about the impact of the new set of Chinese support measures.

11 Oct 2024

Dollar stands tall after robust jobs report

Strong US data dent chances of a 50bps Fed rate cut; Plethora of Fed speakers on the wires today. Dollar enjoys strong gains, stocks rally unexpectedly. Oil pushes higher as gold's retreat continues.

7 Oct 2024

Dollar gets a boost from Fed's Powell but will the move last?

Fed's Powell talks down expectations for another 50bps rate cut. Dollar benefits, US stocks shake off the initial negative reaction.

1 Oct 2024

PCE inflation corroborates dovish Fed bets

The dollar slipped against most of its major peers after Friday’s data revealed that the headline PCE price index slowed more than expected in August.

30 Sep 2024

Equities are on autopilot but cannot help the dollar

Increased expectations for another 50bps Fed cut. Dollar continues to suffer but euro's strength is perplexing.

25 Sep 2024

Global broker Octa deploys an AI-based tool for traders to boost trade analysis

Since the first days of Artificial Intelligence’s rapid expansion into various industries, the financial sector has been one of the leading adopters of these technologies.

24 Sep 2024

Markets digest Fed decision. BoE and BoJ stand pat

Dollar tumbles on bets of more aggressive Fed rate cuts. BoE keeps rates steady, reiterating cation about future cuts.BoJ stands pat, Ueda says more rate hikes are coming. S&P 500, Dow Jones and gold hit new record highs.

20 Sep 2024

Fed goes big with first rate cut

Fed lowers interest rates by 50bps. New dot plot signals another 50bps cuts by December. Wall Street closes in the red, futures point to higher open. BoE and BoJ take the central bank torch.

19 Sep 2024


Editors' Picks

Regulation Matters: Why a Licensed Forex Broker Should Be Your Top Priority

Choosing a regulated broker is not just a matter of preference; it is a necessity for safeguarding your investments and ensuring that you trade in a fair and secure environment.

Automating Success: The Benefits and Risks of Using Forex Expert Advisors

This article explores the benefits and risks associated with using Forex Expert Advisors, providing insights into how traders can maximize their potential while mitigating potential downsides.

Best Forex Brokers 2024

By prioritizing factors such as overall rating, regulatory compliance, trading conditions and platform reliability traders can make an informed decision that aligns with their trading needs and aspirations, setting the stage for a potentially prosperous trading journey.

The Top Forex Expert Advisors 2024: Performance, Strategy, and Reliability Review

An annual roundup reviewing the most successful Forex Expert Advisors (EAs) based on their performance, strategies employed, reliability, and user feedback. This piece would provide insights into which EAs have been market leaders and why.

The Evolution of Forex Expert Advisors: Navigating the Path of Technological Revolution

The concept of automated trading has been around for decades, but the accessibility and sophistication of Forex EAs have seen significant advancements in the past few years. Initially, automated trading systems were rudimentary, focusing on simple indicators like moving averages.

Best Forex EAs 2024 – Forex Expert Advisors Rating

Expert Advisors (EAs) Rating features high-quality Free and paid Forex EA most popular on the market today.

XM information and reviews
XM
82%
FP Markets information and reviews
FP Markets
81%
FXTM information and reviews
FXTM
80%
AMarkets information and reviews
AMarkets
79%
Octa information and reviews
Octa
79%
BlackBull information and reviews
BlackBull
78%

© 2006-2024 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.