NFP sends USD down

Weak NFP sends Dollar lower as risk assets rally

The US dollar has come under broad pressure after a weaker-than-expected Non-Farm Payrolls report. The softer labor market data reinforces expectations that the Federal Reserve is unlikely to raise interest rates and could even move closer to easing policy if economic momentum continues to slow. The US Dollar Index is showing signs of turning lower on the weekly chart, suggesting that the recent recovery in the greenback may have come to an end.
Risk assets are responding positively. Equity markets continue to move higher as lower rate expectations improve the outlook for valuations, while Gold and Silver are posting strong gains on the back of the weaker dollar. Crypto markets are also benefiting from the improved risk sentiment, with Bitcoin and major altcoins extending their recovery. In the FX market, GBP is approaching a key technical crossroads, with upcoming price action likely to determine whether Sterling can resume its broader uptrend against the US dollar.

Market talk

The weaker NFP report has shifted market sentiment firmly toward a risk-on environment. Expectations for additional Fed tightening have faded further, placing continued pressure on the US dollar while supporting equities, precious metals, and cryptocurrencies. FX traders will now focus on upcoming inflation data and comments from Fed officials to determine whether the recent dollar weakness can develop into a broader trend. If the Dollar Index continues to weaken on the weekly chart, major FX pairs such as EUR/USD, GBP/USD, and AUD/USD could extend their recent gains.

Tendencies in the markets

• Equities sideways, USD weak, BTC positive, oil sideways, Silver positive, Gold positive.