OCBC’s Christopher Wong notes that Bank Negara Malaysia (BNM) kept the OPR at 2.75% and struck a slightly firmer tone, with growth expected to stay resilient into 2027. The economist still projects an OPR normalisation to 3.00% in January 2027.
The Mexican Peso appreciates against the US Dollar, testing two-year highs near 16.85 as the USD/MXN sets aside a strong US Nonfarm Payrolls report, which was ignored by the Peso’s bears.
Commerzbank highlights that Bank Negara Malaysia kept the OPR at 2.75% but shifted to a more hawkish bias, removing language that policy is "appropriate" and signalling vigilance on cost pressures.
The USD/CHF registers modest gains of over 0.30% as the Greenback is boosted by a solid US Nonfarm Payrolls report, pushing the pair above the 50-day Simple Moving Average (SMA) to reach a daily high of 0.8126. At the time of writing, trades at 0.8098.
OCBC’s Christopher Wong notes that USD/IDR has pulled back as a softer Dollar and lower UST yields support the Indonesian Rupiah. He highlights Bank Indonesia Governor Destry Damayanti’s emphasis on a stability-first approach, prioritizing Rupiah and macro stability while still supporting growth.
Commerzbank says China’s August Services PMI rebound highlights some resilience in private-sector activity, but weak retail sales, soft inflation and higher unemployment still point to fragile domestic demand.
The Pound Sterling (GBP) retreats some 0.09% against the US Dollar (USD) on Friday as the latest US inflation report reaffirmed Federal Reserve (Fed) Chair Kevin Warsh's view that the labor market is “consistent with full employment.” GBP/USD trades near the open at 1.3512.
DBS Group Research economist Chua Han Teng notes that Bank Negara Malaysia (BNM) held the Overnight Policy Rate at 2.75% while dropping language that the current level is appropriate. DBS expects rates to remain unchanged through 2026 but sees risks tilted towards a one-off policy normalisation.
OCBC’s Christopher Wong notes that strong foreign-currency inflows linked to the RBI’s special measures have bolstered the Indian Rupee (INR) and strengthened the central bank’s FX buffer.
Nordea expects Eurozone inflation dynamics to stay persistent, with headline inflation projected above the ECB’s target at least until spring 2027.
Cleveland Federal Reserve (Fed) President Beth Hammack said on Friday that the current monetary policy stance is not restrictive, emphasizing that inflation is too high.
ING’s Muhammet Mercan notes the Central Bank of the Republic of Türkiye (CBRT) has normalised liquidity via weekly repo auctions, bringing effective funding costs down to the 37% policy rate.
AUD/USD resumes its advance on Friday after a brief bout of weakness following a stronger-than-expected United States (US) employment report.
Gold (XAU/USD) price retreats by about 0.80% on Friday, after registering losses of over 2% following the release of an upbeat US jobs report.
The Dow Jones Industrial Average trades just short of 53,400, roughly 325 points or 0.6% lower on Friday, after August Nonfarm Payrolls (NFP) printed 162K against a 56K forecast at 12:30 GMT and pushed the probability of a September hike above 60%.
Silver (XAG/USD) trades around $66.20 at the time of writing on Friday, down 1.18% on the day, after recovering part of its sharp post-Nonfarm Payrolls (NFP) decline.
EUR/USD sees sharp two-way price swings on Friday after a stronger-than-expected United States (US) employment report triggers fresh volatility. The pair initially fell to an intraday low of 1.1585 before recovering as the US Dollar (USD) struggled to sustain its gains.
Commerzbank’s Commodity Research team, led by Barbara Lambrecht, notes that uncertainty over crude flows through the Strait of Hormuz and conflicting transit data are clouding the outlook for Brent.
Rabobank's Senior Macro Strategist Bas van Geffen expects the European Central Bank (ECB) to hike its deposit rate by 25bp to 2.50% next week and then hold at that level for an extended period.
The United States Dollar Index (DXY) rises some 0.17% on Friday following a stellar Nonfarm Payrolls (NFP) report, with the economy creating nearly three times as many jobs as expected by most economists, as reported by the Bureau of Labor Statistics (BLS).
ING’s Peter Virovacz expects Hungarian industrial production to rebound in July, helping avoid a third-quarter GDP decline despite August headwinds from heatwave-related energy issues.
USD/CHF trades higher on Friday as stronger-than-expected United States (US) Nonfarm Payrolls (NFP) data trigger fresh volatility. The pair jumped to 0.8126 following the release before giving back part of its advance. At the time of writing, USD/CHF trades around 0.8102, up nearly 0.34% on the day.
Royal Bank of Canada (RBC) economist Claire Fan notes Canada’s labour market lost 42,000 jobs in August, partly reversing earlier gains and leaving modest year-to-date job growth. She emphasizes structural factors like demographics and weaker immigration as key drags.
Commerzbank’s Dr. Christoph Balz notes that the U.S. labor market surprised to the upside in August, with Nonfarm Payrolls and private sector jobs both rising strongly while the unemployment rate held at 4.1%. Wage growth continued to slow.
Nomura’s Global Markets Research team, led by Andrzej Szczepaniak, George Buckley and Josie Anderson, expects the ECB to raise the depo rate by 25bp to 2.50% at the 10 September meeting and then pause.
In a post on Truth Social, United States (US) President Donald Trump welcomed the creation of 162K jobs in August, a figure he described as significantly above expectations.
TD Securities strategists note that Canada’s softer August labour report, including weaker employment momentum and slower wage growth, is unlikely to materially change the Bank of Canada’s (BoC) assessment of the labour market.
USD/CAD accelerates sharply higher on Friday, trading around 1.3850 at the time of writing, up 0.39% on the day.
ING’s James Knightley notes that stronger-than-expected US August jobs data, with 162,000 new positions and upward revisions, has increased the perceived likelihood of a September Federal Reserve rate hike.
Gold (XAU/USD) remains under pressure on Friday after stronger-than-expected United States (US) Nonfarm Payrolls (NFP) data revive expectations of a Federal Reserve (Fed) rate hike.
Exclusive insights, trading signals, and real-time updates for registered users.