21/11/2025
The US dollar weakened broadly following Friday’s jobs report, which revealed a cooling labour market. While nonfarm payroll numbers showed an increase of 275,000 jobs in February.
Yesterday, the USD experienced another downward movement after comments from Fed Powell hinted at a potential rate cut. This led to declines in 2-year and 5-year treasury yields.
The UK budget failed to boost the GBP’s performance against the G10 currencies. However, GBPUSD showed resilience, trading back towards 2024 highs despite disappointing US job numbers.
The ISM services data released in the afternoon indicated a continued growth in the sector, albeit below expectations, with concerns emerging over job cuts.
Fed Bostic’s recent statements indicate a projected rate cut in the third quarter of this year, followed by a pause to assess its economic impact.
Currency movements were mixed on Friday due to conflicting statements from Fed speakers and varied manufacturing PMI data.