Here’s what you need to know on Friday, March 10:
US stocks fell sharply on Thursday and US Treasuries rose ahead of Friday’s non-farm payrolls report. Initial Jobless Claims unexpectedly rose to the highest level in ten weeks, removing some bets on a 50 basis point Fed rate hike.
US yields continued to decline during the American session. The 2-year yield fell to 4.95% and the 10-year yield to 3.92%. Falling yields weighed on the dollar. The DXY pulled back for the second day in a row and fell to 105.20. The dollar’s pullback remains a correction after Tuesday’s rally, fueled by hawkish comments from Federal Reserve Chairman Powell.
The US jobs report is due out on Friday, with traders seemingly on the sidelines ahead of payrolls. The numbers could be crucial to the Fed’s rate expectations, as the odds of a 50 basis point rate hike increased during the current week.
The EUR/USD pair It rallied for the second day in a row, but was unable to recapture the 1.0600 level. In it Bank The European Central Bank (ECB) raised voices against the guidance of “important rate hikes in the future”, and the governor of the Bank of Italy, Ignazio Vizco, criticized his colleagues. GBP/USD had the best day of the week to date, hitting a high of 1.1937, the highest level in two days. EUR/GBP returned below 0.8900.
The Bank of Japan will announce its monetary policy decision (no changes expected) at Governor Kuroda’s last policy meeting. His term expires on April 8, after ten years in office. The Lower House of the Japanese Parliament approved Kazuo Ueda as the next governor and two deputy governors (Ryozo Himino and Shinichi Uchida). The Upper House will vote on the candidates on Friday. USD/JPY lost over a hundred points on Thursday, falling back as low as 136.00.
The dollar had mixed results awaiting key data. Commodities and emerging market currencies were affected late on Thursday by the fall on Wall Street. USD/MXN it rebounded 2.5% from fresh multi-year lows.
HeAUD/USD and the NZD/USD they turned negative affected by risk aversion, falling to 0.6580 and 0.6100, respectively. Weak loonie extended losses; USD/CAD it rose for the fourth day in a row, reaching the highest level since mid-October, above 1.3830.
He gold it topped $1,830/oz, driven by declining yields and unaffected by the risk-averse tone. The Silver failed to hold gains and fell back to $20. the bitcoin it broke below $21,000 and reached its lowest level since January 20. Crude Oil prices fell more than 1%.
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Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
