The US dollar came under heavy downward pressure during this week's final trading session. The weakness of the world's reserve currency is mainly due to the surprising NFP data, which surprised for the first time in a long time with a reading well below expectations.
This data is unlikely to change the Fed's attitude. Nevertheless, wages are moving upwards, which is a slightly pro-inflationary factor. In line with the 2% target, wages should grow at around 3% on an annualised basis. The US dollar's sell-off in this case may be due to high expectations after yesterday's hot ADP reading.
NFP report for June: 209k (expected: 230k; previous: 339k).
ADP reading for June: 497k (expected: 225k; previous: 278k).
The GBPUSD pair is currently in the zone of local peaks from mid-June this year. Source: xStation 5
EURUSUD is behaving similarly, attacking the 1.097 zone. source: xStation 5
Risk aversion takes hold as China tensions weigh on sentiment
Daily Summary: U.S.-China Tensions Trigger the Sharpest Sell-Off Since “Liberation Day” ✂️
Trump tariff threat to China sends shockwaves through financial markets
BREAKING: USDCAD slips following Canadian employment data 📌
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
