Weaker-than-expected US Nonfarm Payrolls data for June led to a decline in the US Dollar and lowered expectations of a Federal Reserve interest rate hike, according to FX Street. The data released on Thursday saw the dollar underperform against major currencies as investors reassessed the Fed's tightening path.
Precious metals responded positively to the softer employment figures, with gold extending its gains on Friday. Silver also advanced sharply, rising 2.32% to $62.35 as investors sought refuge in safe-haven assets amid the uncertain outlook for US monetary policy.
For Japanese markets, these developments could influence FX volatility and risk sentiment, especially given the Bank of Japan’s ongoing policy divergence with the Fed.