Mexico’s seasonally adjusted jobless rate decreased to 2.6% in June from 2.7%. The unemployment rate reflects changes in the labour market dynamics.<\/p>\n
The EUR\/USD pair fell to multi-day lows near 1.1630, amid negative pressure from a strong US Dollar. The Euro struggles following the European Central Bank’s stance and a new EU-US trade accord.<\/p>\n
The GBP\/USD pair experiences volatility, trading just above 1.3400. The US Dollar’s strength impacts the pair, while capital outflows from the Euro support the Pound Sterling.<\/p>\n
Gold prices fell to around $3,320 per troy ounce. A stronger US Dollar and US-EU trade progress are influencing the demand for Gold.<\/p>\n
The US faces an August 1 trade deal or tariff deadline. The Federal Reserve is expected to keep interest rates unchanged, while Nonfarm Payrolls are anticipated to remain steady.<\/p>\n
Concerns arise about the Federal Reserve’s delay in cutting interest rates. Factors like ongoing tariff tensions and a resilient economy influence the decision to pause.<\/p>\n
For trading EUR\/USD, consider brokers with competitive spreads and fast execution. This is essential for navigating the dynamic Forex market efficiently.<\/p>\n
We see the European Central Bank has initiated its rate-cutting cycle in June 2024, moving before its US counterpart. This policy divergence is likely to keep the single currency under pressure against the dollar. We should consider strategies that benefit from a lower EUR\/USD, such as buying put options or establishing short futures positions.<\/p>\n
Given that UK inflation for April 2024 was 2.3%, which is still above target, the Bank of England is expected to maintain its current interest rate stance. This may provide the Pound Sterling with a relative strength advantage against the Euro. We view volatility in its main pair as an opportunity, possibly using straddles to trade price swings around key economic data releases.<\/p>\n
Gold prices have retreated from recent highs above $2,400 per ounce, currently trading near $2,330. The stronger greenback and high interest rates are creating headwinds for the non-yielding metal. However, we note that central banks globally added a net 1,037 tonnes in 2023, the second-highest annual total on record, which should provide a long-term floor for prices.<\/p>\n
The recent US Nonfarm Payrolls report showed a robust addition of 272,000 jobs in May, significantly above expectations. This strong labor market data reinforces the decision-making body’s patient approach to any potential interest rate reductions. Therefore, we anticipate continued dollar strength in the coming weeks, influencing all major asset classes.<\/p>\n
Mexico’s low unemployment rate points to a solid domestic economy. However, recent political developments have introduced significant volatility into the peso, which saw it weaken past 18 to the dollar for the first time since 2023. We believe traders should be cautious, perhaps using options to define risk when speculating on that currency’s direction.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Mexico’s jobless rate dips; strong US Dollar pressures Euro, Pound, and Gold; Fed rate pause expected.<\/p>\n","protected":false},"author":62,"featured_media":16965,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-27486","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/27486","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=27486"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/27486\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16965"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=27486"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=27486"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=27486"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}