Forex Daily: US Job Data Sparks Dollar Weakness, Gold Rally

US employment data weighs heavily on the Dollar, driving gains in gold and select emerging market currencies, while market readiness registers 63 and carry trade score sits at 81.

Dollar Under Pressure

• The US Dollar (USD) was identified as the weakest currency by our intraday strength gauge, reacting to a sharp slowdown in US hiring for June.
• News reports indicated a weakening leisure sector contributed to the deceleration in US employment, alongside weak Non-Farm Payrolls (NFP) data.

Gold and Currency Reactions

• Gold gained momentum, pushing above $4,100, directly benefiting from the weaker US employment figures.
• The New Zealand Dollar (NZD) emerged as the strongest currency, also rising as the weak US employment data weighed on the US Dollar. New Zealand consumer confidence recovered, and inflation expectations reset lower.
• The Mexican Peso (MXN) advanced, buoyed by the weak US employment data and speculation surrounding potential intervention.
• The Canadian Dollar (CAD) reached a 10-day high following the release of the US employment data.
• The Euro (EUR) weakened, trading below 1.1450. This decline came as softer inflation data from the Eurozone led to reduced expectations for European Central Bank (ECB) rate hikes.

Key Events Today

• EUR · ECB President Lagarde Speaks: Scheduled
• GBP · BoE Gov Bailey Speaks: Scheduled