Author: FX

The Dow Jones backslid on Friday, falling back below 45,500.NFP job gains came in well below expectations, adding further bets to Fed rate cuts.A steepening decline in job creation has gone too far, overshooting market hopes for rate cuts and reigniting recessionary concerns.The Dow Jones Industrial Average (DJIA) sank on Friday, falling nearly 500 points at its lowest after United States (US) Nonfarm Payrolls (NFP) data showed the US added far fewer jobs than expected, pinning expectations of a Federal Reserve (Fed) interest rate cut on September 17.The latest NFP jobs report showed the US added just 22K net new…

There was something of a random walk down Wall Street today but it ended in the red-ink districts. The jobs report was poor and initially the market took that as good news due to more rate cuts being priced in. Later, that sentiment reversed and recession fears hit, leading to a sizeable swing to the downside. Late in the day though, the bidders showed up as they have been all week and lifted the S&P 500 to only a moderate loss.The rate-sensitive Russell 2000 finished higher on a lift from financials while the Nasdaq was flat.Closing changes on the day:S&P…

High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading and seek advice from an independent financial or tax advisor if you have any questions. Advisory warning: investingLive is not an investment advisor, investingLive provides references and…

The Canadian Dollar tumbled 0.65% against the US Dollar on Friday.Worse-than-expected NFP jobs data sent investors piling into the Greenback safe haven.Canadian jobs data did no favors for the Loonie, showing a sharp contraction in the labor market.The Canadian Dollar (CAD) soured on Friday, skidding into a fifth consecutive losing day against the US Dollar (USD) after employment figures from both Canada and the United States (US) showed both countries are failing to absorb the negative impacts of US President Donald Trump’s trade war with the rest of the world.Employment data for both Canada and the US soured on Friday…

Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee warned on Friday that while sinking employment data is typically a cause for interest rate cuts, still-high inflation data is still cause for concern, and key Fed officials may not be fully sold on a September rate cut.Key highlightsOpen to criticism on Fed decision-making.Totally opposed to taking away Fed independence.Strange to call own move to Fed from CEA after 12 years “sinister” (in reference to Stephen Miran’s shift to the Fed board).Anyone who joins FOMC will take job seriously.Hiring could be artifically lower due to immigration.Still undecided on September rate decision.If…

The Swiss Franc strengthens as USD/CHF drops below 0.8000 to its lowest since late July.Weak US NFP data fuels Fed rate cut bets and triggers broad US Dollar selling.Focus now shifts to next week’s US CPI report, a key test for Fed expectations.The Swiss Franc (CHF) gains ground against the US Dollar (USD) on Friday, with USD/CHF sliding below the 0.8000 psychological mark to touch its lowest level since July 28. At the time of writing, the pair is trading near 0.7972, down almost 1.0% on the day, as the Greenback came under heavy selling pressure in the wake of…

RBC economist Claire Fan is out with a review of today’s soft Canadian jobs report. Jobs fell by 66K after a 41K decline in July in what’s clearly a worsening picture.She notes that the weakness mirrors a softening picture in the US.Fan highlights that unemployment at 7.1% is the highest in a decade outside of the pandemic but also notes some positive signs.”Most of the job losses were part-time, actual hours worked edged up 0.1%, and weakness remained relatively concentrated in the trade exposed sectors of the economy– employment in manufacturing, transport and warehousing together shrank by 42k in August,”…

High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading and seek advice from an independent financial or tax advisor if you have any questions. Advisory warning: investingLive is not an investment advisor, investingLive provides references and…

XAU/USD rallies to a fresh all-time high after NFP miss, with unemployment rising and wage growth holding steady.US 2-year Treasury yield plunges 11 bps to 3.48%, while DXY drops 0.70% to 97.57 amid risk-off flows.Fed independence fears and Standard Chartered’s call for a 50 bps cut amplify the bullish case ahead of US CPI.Gold price rallies sharply and hits a new all-time high of $3,600 on Friday, following a soft Nonfarm Payrolls report, which raised speculation that the Federal Reserve (Fed) is ready to resume rate cuts. XAU/USD trades at $3,594, up 1.30% at the time of writing.Gold jumps 1.30%…

WTI falls to $61.20, its lowest level since June 2, before stabilizing near $61.50.Markets brace for Sunday’s OPEC+ meeting, with Saudi Arabia pushing for an accelerated return of 1.66 mb/d supply, though no final decision has been made.WTI trades below the 50-day SMA at $64.90, with key support at $61.50; a break lower could target $59.50-58.50.West Texas Intermediate (WTI) Crude Oil is heading into the weekend under heavy pressure, extending its losing streak to a third straight day as traders brace for the Organization of the Petroleum Exporting Countries and allies (OPEC+) meeting on Sunday, September 7. At the time…