Dollar retreats, gold rallies on Middle East de-escalation

The dollar weakens after disappointing US labor data, while gold surges on Middle East peace hopes; the yen stabilizes after reported intervention.

Major FX and commodities

• The dollar traded at its lowest level in seven weeks, according to Investing, as US labor data disappointed, easing Fed rate hike expectations. This allowed the Swiss franc to gain, with our intraday gauge ranking CHF as the strongest currency today.
• The Japanese yen stabilized, maintaining gains after a reported record intervention allowed it to return to mid-May levels, reversing its recent weakening trend.
• Gold surged above $4,250, recovering from yesterday's fall below $4,100, driven by advancing hopes for a US-Iran agreement and the weaker US labor figures, as InvestingLive reported.
• WTI crude oil remained weak, near $74.00, approaching a three-week low. This followed reports of an agreement between Iran and Oman concerning the Strait of Hormuz, even as Yemen's Houthis reportedly attacked a Saudi oil tanker.
• On the other end of the spectrum, the New Zealand dollar was the weakest currency today according to our intraday strength gauge, continuing its downward pressure.

Market sentiment

• Our market sentiment gauge (FSI) indicates "Greed" at 64. The MRS stands at 63, and the CTS is high at 80.

Key events today

• USD · Unemployment Claims · forecast 203K vs previous 197K (SCHEDULED)