The US dollar wrapped up the day generally on the upswing, except for a slight dip against the GBP, which turned out to be the week’s champ. Fed’s Musalem took a more hawkish stance than other members after the US jobs report, still wary about tariffs stirring up inflation but noting it’s steady for now.
Canada didn’t meet expectations, with jobs down by 40.8K against an anticipated rise of 13.5K. On hearing this, the USDCAD climbed but faced resistance around 1.3757 near the 100 hour MA. Trading was a bit of a rollercoaster, with most major currencies fluctuating about 0.21% from the last day’s close: EUR up 0.21%, JPY up 0.46%, and GBP down 0.06%, among others.
For the week, the USD had mixed results. It dropped 0.48% against the EUR but gained 0.26% with the JPY. GBP slid 1.35%, however, it benefited from a hawkish push after the BOE cut rates by 25 basis points, surprising with a tighter vote of 5-4 instead of a broader 7-2. Meanwhile, the USD made headway against the AUD and CHF, especially after a hefty 39% tariff was slapped on Swiss imports.
On the stock front, the NASDAQ hit a new all-time high, while the S&P 500 just missed its own record-breaking close. Both had stellar weeks, better than any since April, with the S&P 500 climbing 2.43% and the NASDAQ jumping 3.87%. Yields on US notes were up, fighting back after last week’s pullback due to disappointing U.S. jobs data, showing increases across 2Y, 5Y, 10Y, and 30Y notes.
