JOLTs Job Openings in the United States indicates a cooling labor market
The fall in JOLTs Job Openings in the United States indicates a cooling labor market. This event has increased the likelihood that the Fed will choose for another rate delay in September.
The U.S. JOLTs Job Openings data showed a drop from its prior reading of 9.17 million to the current value of 8.83 million, indicating a cooling labor market. This event has increased the likelihood that the Fed will choose for another rate delay in September. As a result, the dollar suffered an almost 5% decline, while US equities markets ended on a positive note. Commodities have benefited from the dollar’s weakness, with gold prices rising roughly 1% and oil prices remaining above the $50 mark. $81 mark. Furthermore, Grayscale’s recent court triumph over the SEC over the Spot-BTC-ETF application has resonated across the crypto market, bringing Bitcoin to the forefront with an astonishing 8% jump.
Market Reaction
The Dollar Index
Following the announcement of the JOLTs job opening data yesterday, the dollar index fell. This report showed signs of a slowdown in the US labor market, heightening the possibility that the Fed may choose for another rate delay in September. Concurrently, short-term Treasury rates in the United States fell to their lowest levels in weeks, matching with the possibility of a Fed rate pause.
The dollar is reaching its next support level at 103.40, which must be breached. The RSI as well as theMACD has fallen, indicating that the dollar’s bullish momentum is fading.
Levels of resistance: 103.85, 104.38.
Levels of support: 103.40, 102.85.
XAUUSD
Gold prices took advantage of the weakening dollar, breaking out from their price consolidation zone. The July job report, which fell considerably to 8.82 million, fueled market anticipation of a Fed rate delay in September, lessening the dollar’s strength. Notably, statistics showed that individual investors increased their negative wagers last night, with downside exposure increasing by 16.3%.
Gold prices have risen above their week-long price consolidation zone and are now challenging their next resistance level near $1940. The RSI has again entered overbought area, but the MACD continues to rise, indicating a positive trend for gold.
