· The dollar fell broadly on Friday as news of slower U.S. employment growth in July and heightened U.S.-China trade tensions fueled expectations that the Federal Reserve would cut interest rates again in September.
· Nonfarm payrolls increased by 164,000 jobs in July, fewer than the month prior, and wages increased modestly, the Labor Department said. The report came a day after U.S. President Donald Trump announced an additional 10% tariff on $300 billion worth of Chinese imports starting Sept. 1, leading financial markets to almost fully price in a September rate cut.
The dollar fell 0.76% against the Japanese yen to its lowest since Jan. 3, last at 106.50. Versus the euro it was 0.22% weaker at $1.1109. The Swiss franc, which like the yen serves as a safe-haven investment in times of market volatility, was 0.83% stronger to 0.9818 franc per dollar.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 98.106 after seeing levels above 98.7 last week.
· The chance of a September rate cut was 98.1% on Friday afternoon, according to CME Group’s FedWatch tool, a large jump from 56.2% a week prior. Not all market participants were persuaded.
· Treasury yields fell on Friday after President Donald Trump said he would slap additional tariffs on Chinese goods next month, reigniting fears of a prolonged trade war between the world’s largest economies.
The benchmark 10-year yield fell to 1.867% and hit its lowest level since November 2016 earlier in the day. The 30-year bond rate slid to 2.406%.
· President Donald Trump announced an agreement Friday to boost beef exports to the European Union.
Surrounded by trade officials and beef industry representatives at the White House, Trump signed a deal to “lower trade barriers in Europe and expand market access for American farmers and ranchers.” Over the course of the agreement, annual duty-free U.S. beef exports to the EU are expected to nearly triple to $420 million from $150 million, according to the Office of the U.S. Trade Representative.
· Oil prices jumped more than 3% on Friday, a partial rebound from their biggest daily drop in several years on U.S. President Donald Trump’s vow to impose more tariffs on Chinese imports.
The tariffs, due to take effect on Sept. 1, intensify the trade war between the world’s top two economies and oil consumers. Any resulting economic slowdown could hurt crude demand.
The U.S. crude benchmark gained $1.71, or 3.2%, to settle at $55.66 a barrel, a day after tumbling nearly 8%, the biggest loss in more than four years.
Reference: CNBC, Reuters
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