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Follow market-moving stories, policy signals, and company developments curated by the editorial desk.
Lead story
U.S. Treasury and European bond yields climbed on Thursday following comments from central bankers that tempered expectations for near-term interest rate cuts. Investors are now awaiting the June non-farm payrolls report for further clues on monetary policy.
A top South Korean finance official stated the won is misaligned with economic fundamentals and confirmed that Seoul is in close communication with Japan and other allies on foreign exchange issues. The warning comes as the South Korean won languishes near a 17-year low against the U.S. dollar.
The British pound reached a two-week high against the U.S. dollar, which softened after Federal Reserve Chair Kevin Warsh refrained from issuing new hawkish signals. Market attention is now focused on the upcoming U.S. non-farm payrolls report.
Analysts at Citi report that the EUR/GBP currency pair has experienced a bearish technical break, falling below the 0.86 level. The bank suggests this move could signal further declines, potentially toward the 0.8450-0.85 range.
Analysts at UBS anticipate the Monetary Authority of Singapore will keep its policy settings unchanged in its upcoming July review but will likely tighten them in October due to expected increases in inflation. The bank maintains its forecast for a gradual strengthening of the Singapore dollar against the U.S. dollar.
The U.S. dollar experienced its most significant single-day drop since late April after a government report showed June job growth was much weaker than anticipated, leading traders to scale back expectations for a near-term Federal Reserve interest rate hike.
Germany's 2-year bond yield increased on Friday, stabilizing after a sharp drop to its lowest point since mid-April. The preceding rally was driven by cooling economic data and shifting expectations for central bank policy in both Europe and the U.S.
The U.S. dollar pulled back from a recent 13-month peak after employment data came in softer than anticipated, reducing expectations for further interest rate hikes from the Federal Reserve. The move allowed the euro to post weekly gains and provided some relief for other major currencies.
The Canadian dollar climbed to its highest level in 10 days against the U.S. dollar, supported by a weaker-than-expected U.S. employment report and positive domestic manufacturing data. The U.S. data has led to reduced expectations for a near-term interest rate hike from the Federal Reserve.
