Forex and commodities – US jobs data weighs on gold and euro – economy

Speculation that the end of ultra-accommodative US monetary policy is approaching after surprisingly strong US labor market data increased selling pressure on gold on Friday. The so-called anti-inflationary currency increased its losses and fell 2.4% in evening trading to $ 1,760 per troy ounce. At the same time, the dollar index, which reflects the exchange rate against the most important currencies, increased significantly. The euro fell as a result. The price fell below $ 1.18 and fell 0.7% to $ 1.1757 in the evening. In the bond market, US government bonds have skyrocketed from securities deposits. This pushed the yield on ten-year Treasury bonds to 1.304%. The performance of German counterparts fell to minus 0.451 percent from 0.495 percent previously.

The situation on the US labor market improved more sharply than expected in July. 943,000 new jobs were created outside agriculture. Service providers in particular have again hired more staff, but so have government and industry. Economists had predicted only 870,000 new jobs. The separately determined unemployment rate fell in July to 5.4% and therefore more clearly than expected. Financial markets are watching the numbers closely. A sustained recovery in the labor market is an important precondition for the central bank to reduce its start-up aid to the economy ravaged by the corona pandemic for the foreseeable future. Some monetary watchers believe the Fed may be able to slowly start reducing its purchases as early as the fall if labor market reports continue to be favorable.

Prices have fallen in the oil market. The price of a barrel of European Brent fell 1% to $ 70.65.

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