USD/JPY & Intervention Watch:
USD/JPY remains one of the key focal points across FX markets as the pair continues to trade near the psychologically important 160.00 level. Investors remain alert to the possibility of official Japanese intervention should the pair break higher, while expectations for further Bank of Japan policy normalisation continue to build.
Technology & AI Sector:
Broadcom's shares fell approximately 15% following its earnings release, prompting profit-taking across semiconductor and AI-linked stocks, reflected in declines across Asian markets. Broader US market sentiment remained constructive, however, with the Dow Jones rising 1.12% and the S&P 500 gaining 0.62% on the day, offsetting weakness in parts of the technology sector.
Middle East & Oil Markets:
Brent crude declined to $94 per barrel before recovering to finish at $95.38 per barrel. While regional tensions remain elevated, the temporary ceasefire between Israel and Lebanon remains in place, helping to reduce some of the geopolitical risk premium that had recently been supporting energy markets.
Bonds & Fed Expectations:
US Treasury yields declined marginally during the session but remain elevated, with the 10-year Treasury yield ending at 4.47%. Markets continue to assess the outlook for Federal Reserve policy, balancing resilient economic data against expectations that inflation will gradually moderate.
Gold:
Gold rebounded following yesterday's decline, reaching an intraday high of $4,515 before finishing the session at $4,475. The precious metal found support from lower Treasury yields and a softer US dollar, while investors continue to monitor geopolitical developments and the outlook for global interest rates.
Economic Calendar
Today:
- US Non-Farm Employment Change
- US Private Non-Farm Payrolls
- US Unemployment Rate
Key Market Moves Today
- S&P 500 Futures: -0.55% ($7,559.5)
- US 10-Year Yield: -0.79 bps (4.47%)
- Brent Crude: -0.11% ($94.93)
- Bitcoin: -0.8% ($63,064)
- Gold: -0.21% ($4,465.4)
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