- US labor market data beat expectations.
- Wall Street fell sharply and the dollar soared.
- Rise in Treasury bond yields pushed gold down.
The dollar jumped on all fronts after learning of a higher-than-expected rise in non-farm payrolls for July. At the same time, stocks and Treasury bonds plummeted. DXY climbed to 106.75 and is approaching the weekly high.
The EUR/USD went from 1.0230 to fall towards 1.0150, the GBP/USD from 1.2150 to 1.2025 and the USD/JPY jumped from 133.15 to 134.75. The rise was also seen against currencies linked to commodities and those of emerging markets. The USD/MXN It went from 8:35 p.m. to 8:50 p.m.
Figures from the US July jobs report beat expectations. Non-farm payrolls rose by 528,000 against the 250,000 market consensus. The level of employment returned to the pre-pandemic level. Revenues also rose more than expected.
The data boosted expectations of monetary tightening by the Federal Reserve, sending Wall Street down sharply. S&P 500 futures fall 1.05%while those of the Nasdaq 1.39% (before the data they were neutral).
The treasury bond yields they shot up The 10-year bond went from yielding 2.70% to 2.80%, and the 30-year bond from 2.98% to 3.05%. Metals plummeted. The Prayed it fell from $1785 to $1765 in a few minutes, also dragging down silver which fell to a one-week low below $19.70.
Source: Fx Street
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