US Payrolls growth gives Wall Street a pre-holiday boost

Chris Beauchamp IG

Fears of a downturn in US payroll growth were very much mistaken, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

US Payrolls growth provides a holiday surprise

Once again traders have been reminded to ignore the ADP report if they want any hope of guessing the NFP number correctly. Yesterday’s jobs shock proved to be a complete red herring, as the official figure smashed expectations. The US economy, by the looks of it, continues to chug along quite happily. Payroll growth moderated, allaying any inflation fears, and overall, the number has provided the positive tone for US markets as Americans prepare to head off for their long weekend.

Dollar rebound hits Gold hard

After the drubbing it has received in recent weeks and the overall bearish positioning on the dollar, it is no surprise to see the greenback mount a modest bounce following today’s figures. Gold has reversed course on the news as the uncertainty trade continues to unwind. Admittedly, the 9 July tariff deadline looms, but the administration’s appetite for further market turmoil seems much reduced, diminishing the chances of a revival of the rush to gold seen in April.

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Chris Beauchamp

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.