Friday night’s May US jobs report aka non farm payrolls, showed a strong but softening jobs market – particularly wages – which gave Wall Street the green light that a “skip” in the next US rate rise if forthcoming, leading the risk complex higher.
Currency markets came back to King Dollar anyway after a reverse course recently on the skip rumors, with Euro retracing back down to the 1.07 handle while the Australian dollar also lost its mojo, pulling back to the 66 cent level after recently making a new weekly high.
Meanwhile US Treasury yields lifted following the final resolution the debt ceiling deal with the 10 year up nearly 8 pips to settle just below the 3.8% level while oil prices bounced back on more Middle East tension, with Brent crude finishing just above the $76USD per barrel level. Gold failed to continue its small bounce with a return to the $1950USD per ounce level.
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