HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
Exness information and reviews
Exness
86%

Dollar and equities in limbo after mixed US data


9 January 2024

Raffi Boyadjian   Written by Raffi Boyadjian

A mixed batch of economic data releases left the US dollar and equity markets without a clear direction on Friday. On the bright side, the US employment report for December exceeded expectations, with nonfarm payrolls beating forecasts and wage growth coming in hotter than anticipated. However, a sharp drop in labor force participation served as a warning that employment conditions are not quite as strong as they seem at first glance.

Dollar caught in the middle

That was quickly followed by a disappointing ISM non-manufacturing survey, which signaled weaker hiring intentions among businesses and a slowdown in new orders. The dollar traded higher directly after the employment report but its gains soon started to evaporate and it ultimately closed the session unchanged. It was a similar story in the equity space, with shares on Wall Street closing a volatile session near their opening levels.

 

Overall, this dataset did not have much of an impact on the anticipated trajectory of Fed interest rates. Investors weighed a decent employment report against a gloomy ISM survey and decided that the two cancel each other out. This elevates the importance of the upcoming CPI data on Thursday, which could break the deadlock in the debate over how soon the Fed will slash rates.

Gold struggles for altitude, oil hits rough patch

In the commodity sphere, gold prices traded in similar fashion to the US dollar and equities on Friday, closing near their starting levels after whipsawing around. That said, bullion resumed its decline early on Monday, feeling the heat of a slightly stronger dollar and some adverse bond market moves. Gold’s performance in the near term will depend on this week’s inflation stats, but in the bigger picture, the fundamental outlook appears favorable as it is simply a matter of time until interest rates come down. The trend of central banks purchasing gold directly is another bullish development that could persist for years if the geopolitical climate remains unstable.

Speaking of geopolitics, worries about a conflagration in the Middle East intensified last week after Israel struck the capital of Lebanon to kill a senior Hamas leader. These escalation fears translated into a boost for oil prices, but the move has already started to run out of juice, following news that Saudi Arabia will cut the price at which it sells crude.

When a major oil producer like Saudi Arabia offers price discounts, it’s either a sign of concern about weakening demand conditions or an attempt to stop foreign producers such as the USA from stealing market share away. Either way, it’s a bearish signal for energy prices.

Chinese stocks fall as shadow bank goes bankrupt 

One of the biggest players at the heart of the Chinese shadow banking system filed for bankruptcy on Friday, providing the clearest indication so far that the property market crisis has started to infect the opaque lending industry. Even though investors were aware Zhongzhi Enterprise Group was facing severe liquidity issues, the news of its bankruptcy still dragged local equity markets down today.

Zhongzhi’s downfall underscores the difficulties Beijing faces in its attempt to stabilize the real estate market and rein in private debt levels, in a financial system that includes many dark corners and therefore hidden risks.

Finally in the US, Congressional leaders reached a spending deal that makes a partial government shutdown later this month less likely. That said, the deal still needs to pass both chambers of Congress and be signed by the President.

By XM.com

#source


RELATED

Fed cut expected, market reaction hinges on multiple factors

Fed meeting today; rate decision at 18:00 GMT, Powell speaks 30 minutes later; A 25bps cut is expected but details matter for markets, particularly the dot plot; Powell expected to follow the Jackson Hole script; all eyes on possible signals about October.

17 Sep 2025

Dollar drops as Fed rate cut looms

US dollar and Treasury yields drop ahead of Fed decision. President Trump urges Powell to deliver bigger cut. Pound up after jobs data, yen gains on BoJ hike bets. S&P 500, Nasdaq and gold hit new record highs.

16 Sep 2025

Risk sentiment on the mend as investors gear up for Fed decision

A defining week has just started, with investors counting down to Wednesday’s pivotal Fed meeting.

15 Sep 2025

Risk appetite improves but investors stay vigilant

Dollar and US equities rally; crypto market is indecisive; Volatility remains elevated despite improved risk sentiment; US PPI data could show tariff impact ahead of CPI report; Gold and oil are supported by broader geopolitical tensions.

10 Sep 2025

Fragile risk appetite as US data boost Fed cut bets

Softer US jobs data leave door open for a larger Fed rate cut; Dollar and US equities try to find their footing today; Yen under pressure after PM Ishiba’s resignation; Gold and oil rally, supported by weaker dollar and geopolitical tensions.

8 Sep 2025

Risk appetite firms up as investors anticipate softer US data

Risk sentiment improves, dollar slightly under pressure; Gold holds gains, bond yields ease across the board; Today’s NFP could determine the size of the Fed rate cut; Decent market reaction if jobs data delivers a strong upside surprise.

5 Sep 2025

Risk markets jittery as expectations for soft US data mount

Risk sentiment remains fragile ahead of the first batch of key US data; Gold and rising bond yields continue to unnerve investors; ADP report and ISM Services PMI might open the door to a 50bps Fed cut; Fedspeak to intensify, markets to digest Miran’s hearing headlines today;

4 Sep 2025

Calm before the storm in markets ahead of pivotal US data

Dollar on the back foot, equities remain wobbly; Court battles in focus after Friday’s tariffs ruling; Investors prepare for critical US data; all eyes on Friday’s jobs report; Uncertainty boosts gold and silver.

1 Sep 2025

Dollar extends slide as Bessent talks double rate cut

Dollar slips on increasing Fed rate cut bets. Treasury Sec. Bessent favors a 50bps reduction. Yen rallies on concerns about BoJ’s inflation metric. S&P 500, Nasdaq and Bitcoin climb to new record highs.

14 Aug 2025

Dollar slips as CPI data increase September Fed cut bets

US headline CPI holds steady, but core CPI accelerates; Still, the miss in the headline rate increases September cut bets; Gold slightly up, but traders remain cautious ahead of Trump-Putin talks

13 Aug 2025

Markets on edge, await US inflation figures

Muted risk appetite ahead of critical US inflation report; Strong CPI report could derail Fed rate cut expectations, boost the dollar; Gold and oil hold steady as Trump-Putin meeting nears; Aussie ignores RBA cut.

12 Aug 2025

Tariff and Fed developments weigh on dollar’s recovery

Muted risk appetite; equity indices edge higher, bitcoin struggles; August 12 deadline for US-China truce in the spotlight; Gold flirts with $3,400 as US prepares to tariff gold bar imports.

8 Aug 2025

Dollar suffers from Trump’s tariff announcements

Tariffs back in the spotlight; China could be next; Equities shrug off tariff headlines but dollar weakens; Gold rises despite progress made in the US-Russia talks; BoE to cut rates; pound’s performance hinges on degree of dovishness.

7 Aug 2025

Dollar seeks direction as Trump’s TV appearance could hurt risk appetite

Following a disastrous Friday for dollar assets, both the US dollar and US equity indices are showing tentative signs of life.

5 Aug 2025

US jobs data may challenge the dollar’s recent strength

Despite the eventful calendar so far this week – with the FOMC meeting and the various tech stock earnings standing out – market volatility had remained low until yesterday.

1 Aug 2025

Dollar rally pauses as Fed signals patience once again

Both the US dollar and US equity indices are trying to find their footing after the critical FOMC meeting.

31 Jul 2025

Dollar strength persists ahead of key events

Both the dollar and US equities start the week on a strong note; Euro suffers as European leaders challenge the US-EU trade deal; Gold retreat stalls; oil fails to materially benefit from Trump's Russia comments.

29 Jul 2025

Dollar on the defensive, seeks support

ECB pauses, raises the bar for September rate cut; Trump’s Fed visit proves uneventful, despite rate cut demand; Dollar losses mount this week, even the yen outperforms the greenback; Cryptos are on the back foot today; altcoins maintain sizeable gains.

25 Jul 2025

EU and US close to a trade deal ahead of ECB decision

After Japan, the US is nearing a trade accord with the EU. S&P Global PMIs in focus ahead of next week’s FOMC decision. ECB to stand pat, Lagarde’s signals to be key for the euro. S&P 500 hits a new record high, but earnings results come in mixed.

24 Jul 2025

Dollar strength undermined by Trump's Fed criticism

Trump firmly holds the keys to market volatility; A July rate cut is likely written off unless data turns negative; US Treasury yields have taken notice of Trump’s criticism of Powell; Pound benefits from euro’s troubles despite mixed UK data.

17 Jul 2025


Editors' Picks

How to Choose the Best Forex Advisor 2025

Key Factors to Consider When Choosing a Forex Advisor. Risk Management. Fees and Costs. Compatibility with Your Trading Style.

Automating Success: The Benefits and Risks of Using Forex Expert Advisors

This article explores the benefits and risks associated with using Forex Expert Advisors, providing insights into how traders can maximize their potential while mitigating potential downsides.

Best Forex Brokers 2025

By prioritizing factors such as overall rating, regulatory compliance, trading conditions and platform reliability traders can make an informed decision that aligns with their trading needs and aspirations, setting the stage for a potentially prosperous trading journey.

The Top Forex Expert Advisors 2024: Performance, Strategy, and Reliability Review

An annual roundup reviewing the most successful Forex Expert Advisors (EAs) based on their performance, strategies employed, reliability, and user feedback. This piece would provide insights into which EAs have been market leaders and why.

The Evolution of Forex Expert Advisors: Navigating the Path of Technological Revolution

The concept of automated trading has been around for decades, but the accessibility and sophistication of Forex EAs have seen significant advancements in the past few years. Initially, automated trading systems were rudimentary, focusing on simple indicators like moving averages.

Best Forex EAs – Forex Expert Advisors Rating

Expert Advisors (EAs) Rating features high-quality Free and paid Forex EA most popular on the market today.

FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Just2Trade information and reviews
Just2Trade
76%
FXNovus information and reviews
FXNovus
75%
Riverquode information and reviews
Riverquode
75%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.