USD drops after NFP miss as majors recover, US indices slide, and Gold rebounds [Video]

Jasper Osita Independent Analyst

Last week, the US dollar dropped fast after a strong and steady run to the upside. The reason? A combination of soft economic data, rising rate cut expectations, and a shift in sentiment as traders reassessed the Fed’s next move after, finally, breaking lower on the back of a weaker-than-expected Non-Farm Payrolls (NFP) report. With job growth missing forecasts and unemployment ticking higher, traders quickly repriced the Fed’s next move.. This triggered a sharp unwind in dollar strength, opening the door for major pairs like EUR/USD, GBP/USD, and AUD/USD to stage a comeback.

As structure shifts from bearish to potentially bullish across the FX board, we’re now seeing clearer signs of recovery forming. Momentum is building against the dollar as price action begins to favor the bulls after weeks of downside.

At the same time, US stock indices are slipping lower, weighed down by rising yields, disappointing earnings in key sectors, and a rotation away from risk as investors digest a changing macro environment.

Gold is also making moves. After a strong bounce near the $3,250 support level, it’s now pressing higher as the weaker dollar and flight to safety fuel renewed upside interest.

In this video, I break down:

Why the dollar reversed sharply last week.
How major FX pairs are shifting structure.
Stocks indices breaking lower.
The current momentum in gold after holding $3,250.

Author

Jasper Osita

Independent Analyst

Jasper has been in the markets since 2019 trading currencies, indices and commodities like Gold. His approach in the market is heavily accompanied by technical analysis, trading Smart Money Concepts (SMC) with fundamentals in mind.

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