The dollar index (DXY00) fell on Friday from a two -month increase and fell by -0.95 %. The dollar fell on Friday after the July salary report showed that the US labor market was cooled more than expected, which strengthened speculation that the Federal Reserve may reduce interest rates as soon as possible next month. The losses in the dollar accelerated after the July ISM manufacturing index, which was contracted in 9 months. The chance of reducing the Federal Reserve in the FOMC meeting in September increased to 84 % of 40 % before the salary was drafted today and ISM reports were issued.
The dollar initially gathered to the highest level on Friday over two months to increase the demand for safe term after global stock markets fell due to the concern that President Trump’s policies are hindering the global economy. On Friday, the sale of Friday has strengthened some liquidity demand for the dollar.
Salary salaries rose in July, not visited to +73,000, weaker of +104,000 forecasts, and not cultivated salaries in June were revised to +14,000 from +147,000 previously. The July +0.1 unemployment rate increased to 4.2 %, directly on expectations.
The average profits in July in July increased by 3.9 % on an annual basis, stronger than +3.8 % on an annual basis.
The US ISM manufacturing index has decreased unexpectedly -1.0 to 48.0, weakening of the increase expectations to 49.5 and a breaking speed in 9 months.
The spending in the United States in Jun has decreased unexpectedly -0.4 % m/m, weaker than not change.
The Consumer Feelings Index at the University of Michigan July was reviewed to 61.7 out of 61.8, that is, weaker than the upward review expectations to 62.0.
The head of the Federal Reserve at Atlanta Rafael Bustic said inflation is still beyond the goal of employment, and it is not ready to increase expectations to reduce the interest rate of 2025.
The head of the Cleveland team, Peth Hamak, said that the US labor market is still in good health, although new job numbers today constitute a “disappointing report to confirm.”
In the latest news of the tariff, President Trump raised late Thursday the tariff on some Canadian goods to 35 %, and announced 10 % of the global customs tariff by 10 % and 15 % or higher for countries that have trade surpluses with the United States, which are valid after midnight of August 7.
Future prices in federal funds deduct the chances of reducing the interest rate -25 basis points by 86 % at the FOMC meeting from 16 to 17 September and 65 % at the next meeting on 28-29 October.
EUR/USD (^EURUUSD) was recovered from the 1.5 -month low of Friday and sharply hatred of +1.11 %. The euro rose on Friday after the dollar drowned on the report of salaries in July, the weakest of the expected. The euro also received support from economic news in the euro area on Friday, which showed that the consumer price of July has increased more than expected, which is a sincere factor for the policy of the European Central Bank.
The euro initially decreased on Friday due to growth concerns in the euro area after President Trump announced the global minimum by 10 % and 15 % or higher than the customs tariffs of countries that have trade surpluses with the United States. Also, the declining review on Friday to the German Jul S & PJ’s purchasing managers was under the euro.
The AIA CPI +2.0 % increased on an annual basis, stronger than +1.9 % on an annual basis. Core Core Core CPI +2.3 % Y/Y, directly on expectations.
The German Jul S&P trees managers have been revised to the bottom -1 to 49.1 from 49.2 previously reported.
The bares are captured with an opportunity by 18 % of the average -25 basis points by the European Central Bank at the September 11 Policy meeting.
Usd/JPY (^USDJPY) was sold on Friday at -2.00 %. The yen recovered from his lowest level in 4 months against the dollar on Friday and gathered sharply after the Japanese Finance Minister expressed his concerns about the weak yen. Also, short coverage in the yen appeared with an increase in safe demand after global stock markets fell on President Trump’s introductory plans. The gains in the yen accelerated on Friday after the T-Note yields on the weakest salary reports in July in July.
The Japan Manufacturer Manager Index in Japan Jul S&P has been revised to 4.1 to 48.9 of 49.8 previously reported.
Japanese Finance Minister Kato said the Japanese government “is very concerned” about the movements in the foreign exchange market, including those led by speculation.
Gold was closed in December (GCZ25) on Friday +51.20 (+1.53 %), and September (SIU25) +0.217 (+0.59 %) was closed. The precious moved to the top on Friday, with a sharp mobilization of gold. On July is weakening in July, ISM manufacturing reports fell in July the dollar and strengthening precious metal prices. The precious metals also obtained support as a valuable store, as the weak American economic reports reinforced the opportunity to reduce the interest rate in the Federal Reserve at the FOMC meeting in September to 84 % of 40 % before the report. In addition, precious metals are climbed due to the increased demand for safe term after President Trump announced new tariff rates, which may weaken the global economy. The precious metals still receive safe support from geopolitical risks, including conflicts in Ukraine and the Middle East.
The prices of precious metals have declined from its best levels on Friday to the Federal Reserve’s comments after the Federal Reserve Chairman at Atlanta Rafael Bustic said that inflation is still beyond the goal of employment, and it is not ready to increase expectations to reduce the interest rate 2025. Also, concerns about demand for industrial minerals weighing silver prices after the American manufacturing activity in July that were contracted with in more than nine Months.
On the date of publication, Rich Asplund did not have positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article are only for media purposes. This article was originally published on Barchart.com
