Author: FX

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Richmond Fed President Tom Barkin said the decline in the unemployment rate was welcome and described job growth as modest but stable. He also noted that hiring remains concentrated in healthcare and AI, leaving the overall picture uncomfortably narrow, adding that demand still looks healthy, while progress on inflation will take time, keeping upcoming data in focus.Key QuotesDrop in the unemployment rate is welcome.Hard to find firms outside of healthcare or ai who are hiring.Job growth is modest, very much in line with low-hiring and low-firing continuing.The narrowness of hiring is “uncomfortable.”Do not hear the cost of interest being cited…

Headlines from Barkin:Federal Reserve changes must be finely tuned to incoming dataBoth sides of central bank mandate face significant risksUnemployment remains at historic lows but has recently ticked upInflation has decreased but still remains above 2% targetInterest rates are now within range of neutral estimatesNo one wants labor market to experience further deteriorationUS economy has shown remarkable resilience despite major disruptionsJob growth and demand are currently narrow, driven by health care and aiHigh-income consumers are sustaining demand as sentiment dips elsewhereUncertainty from 2025 is expected to diminish as the “fog lifts”Tax refunds and deregulation will likely add stimulus to economyLower…

The Canadian Dollar (CAD) trades little changed against the British Pound (GBP) on Friday, with GBP/CAD struggling to find direction as traders show a muted reaction to Canada’s latest employment report. At the time of writing, the pair trades around 1.8636, hovering near one-month highs.Data released by Statistics Canada showed that Net Change in Employment rose by 8.2K in December, beating market expectations for a 5K decline, but easing sharply from November’s 53.6K gain. Meanwhile, the Unemployment Rate climbed to 6.8% from 6.5%, coming in above forecasts of 6.6%.Wage growth also showed signs of cooling. Average Hourly Wages increased 3.7%…

AUD/USD trades lower on Friday, with the pair hovering around 0.6680 at the time of writing, down 0.23% on the day. The move mainly reflects renewed support for the US Dollar (USD), against a backdrop of mixed macroeconomic releases in the United States (US), while the Australian Dollar (AUD) remains weighed down by softer expectations for monetary tightening in Australia.The US Dollar is supported after the release of December labor market data in the United States. Figures from the Bureau of Labor Statistics showed that job creation slowed, with only 50,000 new jobs added, falling short of market expectations. However,…

Gold price rises on Friday, poised to end with weekly gains of nearly 4% as an employment report in the US was mixed, with the economy adding fewer jobs than projected. Still, the Unemployment Rate ticked lower, yet investors are still betting the Federal Reserve (Fed) to cut rates this year. At the time of writing, XAU/USD trades at $4,507, up 0.65%.Bullion rallies as weaker payrolls keep Fed cut bets aliveThe US economic data weighed on investors’ expectations of lower interest rates in the short term. But for the whole year, traders seem confident that the Federal Reserve would lower…

Gold and silver have been volatile to start the year so far but the bulls have shown some impressive willingness to buy moderate dips. Now both are flirting with notable closes. Gold is attempting only its second-ever weekly close above $4500 after doing that on December 22 in holiday-thinned trading. Silver is attempting a weekly close above $80 for the first time ever.Both would be bullish signs.There was some profit taking after the huge moves in precious metals just after Christmas but they’ve found a footing in light of geopolitical turmoil. The US capture of Venezulan President Maduro is one…

It’s time for Fed not to lose sight of inflation missionFed’s job and inflation mandates are somewhat in tensionNeed to be ‘laser focused’ on lowering inflationInflation is ‘a lot’ above the 2% targetNo hire, no fire continues to be key labor market dynamicThe job market has been cooler but it’s not clear its fundamentally weakerHearing about stress from sectors that depended on foreign workersCost pressures are not just from tariffsIt’s very important we get inflation under controlInflation issues are still one of the economy’s main challengesNow ended pandemic supports had buoyed lower income AmericansIn many ways U.S. has long had…

The non-farm payrolls came in a bit softer than the whisper numbers, giving the “bad news is good news” crowd a reason to cheer. For the ECB, it doesn’t change much, but for equity bulls, it was the green light they needed to keep the momentum going.Here’s the closing scoreboard for the week ending January 9, 2026:The STOXX 600 rose 2.23% on the week, a solid performance that speaks to improving breadth across sectors. Cyclicals quietly outperformed defensives, suggesting investors are leaning into growth without fully abandoning caution.Germany’s DAX led the major benchmarks with a 2.86% weekly gain, continuing to…

USD/CAD trades around 1.3900 on Friday at the time of writing, up 0.25% on the day, supported by a combination of macroeconomic factors favoring the US Dollar (USD) and weighing on the Canadian Dollar (CAD).The Greenback finds support following the release of mixed labor market data in the United States (US). Nonfarm Payrolls (NFP) rose less than expected in December, while the Unemployment Rate declined and wage growth accelerated. Taken together, these figures point to a labor market that is gradually cooling but remains relatively resilient, reinforcing expectations of a cautious approach from the Federal Reserve (Fed). Markets largely expect…