Weaker-than-expected US jobs data and a reduced outlook for Federal Reserve rate hikes have pressured the US Dollar, boosting other currencies and gold prices. According to FX Street, USD/CAD traded near 1.4175 during the European session on Friday as the greenback came under selling pressure amid easing hawkish Fed prospects.
Gold prices climbed above $4,100 per ounce, with TD Securities noting the metal is expected to trend toward $4,280 per ounce while finding support near $3,900. Meanwhile, Commerzbank highlighted that the Japanese Yen strengthened significantly against the US Dollar, with USD/JPY dropping sharply on speculation of smaller Fed hikes and possible foreign exchange intervention.
Deutsche Bank reported that softer US jobs data has lowered expectations for further Fed tightening in 2026, pricing in only 30 basis points of rate increases by December. ING cautioned that while the Dollar weakened, major dovish repricing is unlikely to extend USD losses. For Japanese investors, these shifts underline the importance of monitoring Fed policy signals amid ongoing FX volatility and equity market sensitivity.