Market Drivers – US Session: Markets Eye More US Jobs Data as Dollar Slides and Commodities Gain

Global markets are entering a key phase as investors shift their focus to upcoming US employment data. The US Dollar continues to slide, retreating to levels last seen in late October amid growing expectations that the Federal Reserve may adopt a more dovish stance in its next policy meeting.

The Euro has surged to fresh two-month highs, nearing the 1.1700 mark as the single currency benefits from the Greenback’s weakness. Similarly, the British Pound has climbed past the 1.3300 barrier, riding the wave of dollar softness. Meanwhile, the Japanese Yen remains choppy, testing resistance levels as traders await data on foreign bond investments.

The Australian Dollar also extended its gains, approaching key technical thresholds, as investors weigh the impact of domestic trade figures and household spending. Oil prices rebounded, approaching $60 per barrel, driven by renewed geopolitical concerns in Eastern Europe. Precious metals followed suit, with gold reclaiming the $4,200 level and silver nearing historic highs, buoyed by the weaker dollar and safe-haven demand.

Looking ahead, markets are keeping a close eye on US jobless claims, trade balances, and construction sector data in Europe and the UK, all of which could influence currency flows and commodity prices. Investors are bracing for volatility as these releases are expected to guide expectations for future central bank moves and global market trends.

With sentiment shifting across currencies, commodities, and risk assets, market participants are preparing for a potentially turbulent session, where employment data could set the tone for the coming weeks.