As risk markets gear up for tonight’s May US jobs report aka non farm payrolls, Fed officials overnight indicated a possible “skip” in the next US rate rise, sending the USD down sharply against the currency majors. Wall Street lifted across the board although the rally in tech stocks is waning, and more private employment data went against the “skip” trend, setting up for a potentially volatile NFP print tonight.
Currency markets reversed course swiftly on the skip comments, with Euro bouncing sharply above its previous weekly low while the Australian dollar also saw an escape and lept up through the 65 handle to make a new weekly high.
Meanwhile US Treasury yields slid further lower with the 10 year down another 4 pips to settle at the 3.6% level while oil prices took back their recent loss with Brent crude finishing just above the $74USD per barrel level. Gold continued its small bounce with a lift up towards the $1980USD per ounce level.
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