The dollar softened ahead of Friday’s U.S. jobs report as Fed’s Goolsbee kept September’s meeting “live.” The yen outperformed after strong wage and spending data bolstered the case for a Bank of Japan hike, while Japanese auto stocks gained on tariff relief. Asia-Pacific equities mostly advanced and U.S. yields eased.
- Japan’s wages surge in July as real pay rises for first time since December - recap
- Canada postpones EV sales target to 2026, citing strain on automakers from tariffs
- The US dollar is broadly falling in Asia trade
- ING flags October BoJ hike on rising pay, sees politics and tariffs as key risks
- PBOC sets USD/ CNY reference rate for today at 7.1064 (vs. estimate at 7.1390)
- President Trump’s son Eric says he'll be making “a big announcement” Friday.
- Oil falls before OPEC+ output decision as U.S. crude stocks surprise with sharp build
- US Treasuries yields dripping back to their lowest since May this year
- OpenAI set to start mass production of its own AI chips with Broadcom
- Trump warned of 100% tariffs on foreign chip imports unless firms build in U.S.
- Trump has done a masterful job - headlines proclaim lower tariffs on Japanese autos!
- Japan July data. Real wages +0.5% y/y. Household spending +1.4% y/y (exp 2.3%)
- Fed's Goolsbee says there is a bit of wait and see because of uncertainty
- Trump prepares to start North American trade deal renegotiation - Wall Street Journal
- JPMorgan sees gold as key hedge as Fed independence fears reshape market positioning
- Bank of America forecasts euro to hit $1.25, says U.S. dollar risks undervaluation
- Goldman Sachs forecast gold as high as US$5,000 / oz
- UBS says U.S. equities remain attractive despite lofty valuations
- investingLive Americas FX news wrap: ISM services a touch strong, ADP a touch soft
- Trump has finally signed the US-Japan trade agreement
- S&P 500 nearly touches the all-time record into the close
- Friday's non-farm payrolls report is a nightmare to trade
The dollar traded on the back foot ahead of Friday’s U.S. jobs report (0830 ET). Chicago Fed President Austan Goolsbee struck a cautious tone, saying the September FOMC meeting is “live” and that he has yet to decide on a cut.
The yen outperformed as Japanese data beat expectations. Real wages rose for the first time since December, total cash earnings posted their fastest increase in seven months, and household spending rose for a third straight month. The figures bolstered the case for a nearer-term Bank of Japan rate hike.
Japanese auto stocks advanced after President Trump signed an executive order capping U.S. tariffs on the sector at 15%, lifting sentiment.
In corporate news, the Financial Times reported that OpenAI is preparing to design and produce its own AI chips with Broadcom from 2026.
U.S. Treasuries edged higher, with yields slipping slightly. Asia-Pacific equities mostly gained.
Asia-Pac stocks:
Japan (Nikkei 225) +0.9%
Hong Kong (Hang Seng) +0.5%
Shanghai Composite +0.25%
Australia (S&P/ASX 200) +0.3%
Gold is back above US$3550.
