The dollar has received another big leg up today after a stellar nonfarm payrolls report pointed to no end in sight to the recent period of US economic exceptionalism.
Jobs continue to be added at an extraordinarily impressive pace, with the December NFP print obliterating even the most optimistic of forecasts. The unemployment rate has dropped, and nominal earnings growth remains elevated, despite coming in slightly below estimates.
We think that today’s report all but guarantees that the Federal Reserve won’t even consider lowering interest rates again until at least June, and it is far from inconceivable that we see no US rate cuts at all during the entirety of 2025.
Bond markets globally have continued to sell-off on the news, in what is beginning to constitute a significant worry for borrowers, while also raising the risk of a slowdown in global economic activity this year.
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EUR/USD trades deep in red below 1.0300 after strong US jobs report
EUR/USD stays under bearish pressure and trades below 1.0300 in the American session on Friday. The US Dollar benefits from the upbeat jobs report, which showed an increase of 256,000 in Nonfarm Payrolls, and forces the pair to stay on the back foot heading into the weekend.
GBP/USD drops toward 1.2200 on broad USD demand
GBP/USD extends its weekly slide and trades at its weakest level since November 2023 below 1.2250. The data from the US showed that Nonfarm Payrolls rose by 256,000 in December, fuelling a US Dollar rally and weighing on the pair.
Gold ignores upbeat US data, approaches $2,700
Following a drop toward $2,660 with the immediate reaction to strong US employment data for December, Gold regained its traction and climbed towards $2,700. The risk-averse market atmosphere seems to be supporting XAU/USD despite renewed USD strength.
Sui bulls eyes for a new all-time high of $6.35
Sui price recovers most of its weekly losses and trades around $5.06 at the time of writing on Friday. On-chain metrics hint at a rally ahead as SUI’s long-to-short ratio reaches the highest level in over a month, and open interest is also rising.
Think ahead: Mixed inflation data
Core CPI data from the US next week could ease concerns about prolonged elevated inflation while in Central and Eastern Europe, inflation readings look set to remain high.
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