Currency Market News

A much weaker-than-expected U.S. August payrolls report pushed Treasury yields and the dollar lower as traders ramped up Fed cut bets; separately, a sharp drop in Canadian jobs left the loonie lagging and boosted odds of a BoC easing. Short-term FX moves will hinge on rate-path repricing, yield action and oil.

Treasury yields dropped to multi‑month lows and traders pushed odds of a September Fed cut higher, softening the dollar ahead of U.S. payrolls. Separately, a new U.S. order cutting auto tariffs on Japanese imports to 15% strengthened the yen and put downward pressure on USD/JPY.

Cooling US labor data pushed traders to price a near-certain September Fed rate cut, keeping the dollar under pressure. Separately, Australia’s stronger-than-expected Q2 GDP trimmed bets on RBA easing and gave the AUD a lift. Here’s what changed and the short-term implications for USD and AUD traders.

A selloff in long-dated government bonds pushed long yields higher and supported the US dollar broadly, while Bank of Japan Governor Ueda’s comments with Japan’s prime minister signaled possible policy tightening that keeps the yen in focus for FX traders.

US dollar weakness on rising Fed-cut odds pushed gold to a fresh record above $3,500, while the Indian rupee steadied near 88/USD after offshore position unwinds and a domestic equity rebound.

The US dollar eased as traders positioned for a key US jobs report that will influence Fed expectations, while the Indian rupee fell through the 88/USD mark amid equity outflows and importer demand. Both moves have clear near-term drivers and immediate trading implications.