Softer-than-expected NFP sends dollar reeling
The US dollar slips and traditional safe-haven currencies rise as the latest US jobs print for July points to a weakening jobs market.
Panmure Liberum’s Joachim Klement tells IG’s Angeline Ong that after the recent ISM manufacturing data, we are now in a phase where ‘bad news is bad news’ for the markets.
(AI Video Summary)
Projections for the non-farm payrolls data
This non-farm payrolls (NFP) preview focuses on the monthly US jobs report with particular attention to its implications on economic forecasts and Federal Reserve (Fed) policy responses. The conversation highlights concern about potential recession signals indicated by the Sahm rule if unemployment rates increase. Participants speculate about the Fed's potential interest rate cuts in response to softening economic indicators and market reactions.
The numbers are in
As the actual jobs data arrives showing weaker-than-expected employment growth and slight upticks in unemployment rate, it confirms fears of a slowdown, prompting predictions of imminent rate cuts by the Fed to cushion the economy. This scenario impacts market sentiment, weakening the US dollar and influencing Treasury yields, with a sharp increase in market volatility observed.
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