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.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
