The US dollar is closing the day mostly higher. The one exception is a modest decline versus the GBP (which was the strongest currency this week).
The Feds Musalem was more hawkish compared to other Fed members post the US jobs report. He is still concerned about the impact from tariffs on inflation good where they are.
Other news today, Canada was weaker than expectations with a decline of -40.8 job vs expectations of 13.5K. The USDCAD moved higher on the news but the gains found some selling near the 100 hour MA at 1.3757
For the trading day the markets were mostly up and down with most of the major currencies trading with 0.21% from the previous day’s close. :
- EUR +0.21%
- JPY +0.46%
- GBP -0.06%
- CHF +0.21%
- CAD +0.11%
- AUD +0.05%
- NZD +0.13%
For the trading week, the USD was mixed. Below are the USD changes vs the major currencies:
- EUR -0.48%
- JPY +0.26%
- GBP -1.35%
- CHF +0.62%
- CAD -0.23%
- AUD +0.83%
- NZD -0.71%
The GBP moved higher this week helped by the hawkish cut from the BOE. The central back lowered rates by 25 basis points but the vote of 5-4 was closer than the 7-2 expected. As a result, the dollar lows -1.35% vs the GBP today.
The USD was the strongest vs the AUD and the CHF. The USD moved higher vs the CHF after the Trump administration raised the Switzerland tariffs to 39%, one of the highest levels among the major trading partners.
For a technical look at the major currency pairs going into the new trading week, click on the following links:
The NASDAQ index closed at another record high. The S&P index closed just short of all-time record high close. For the trading week, both the broader indices had their best weeks since April 23. The S&P index rose 2.43% while the NASDAQ index advanced by 3.87%.
Looking at the US yield curve, yields today were higher.
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US 2Y T-Note: 3.7624% (+2.8 bps)
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US 5Y T-Note: 3.8312% (+4.1 bps)
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US 10Y T-Note: 4.2849% (+4.1 bps)
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US 30Y T-Bond: 4.8524% (+4.0 bps)
For the trading week, yields are also higher. Recall last week, yields fell sharply after the weaker than expected US jobs report.:
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US 2Y T-Note:+8.2 bps
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US 5Y T-Note: +7.6 bps
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US 10Y T-Note: +6.9 bps
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US 30Y T-Bond: +3.0 bps
