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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

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.

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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 Ltd and IG Markets South Africa 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.

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