Volatility looms across markets

Asian Market

China's central bank announced a temporary halt in government bond purchases due to supply constraints. This move has pushed bond yields higher across various maturities, signaling tighter conditions in the fixed-income market.

Currencies

the USD/JPY trading near 158.4 yen, a local high within this week's consolidation range. In contrast, currencies tied to the British pound and New Zealand dollar are underperforming. The USD/CAD pair extends its rally for the fourth consecutive session, currently around 1.4420 during Asian trading hours. The pair benefits from the hawkish tone in the Federal Open Market Committee (FOMC) minutes and ongoing uncertainties over proposed trade tariffs.

Commodities

• Gold (XAU/USD): Gold prices maintain a bullish trend, trading near a four-week high as geopolitical tensions and trade uncertainties linked to US policies drive demand for safe-haven assets. Concerns over inflation, fueled by expectations of expansionary policies, further support gold as a hedge against rising prices.
• Crude Oil (WTI): WTI crude remains steady at $73.65, with a stronger US dollar offsetting supply concerns. The market remains cautious as demand and geopolitical risks influence price movements.

US Labor Market Focus
Market participants are closely watching today’s Non-Farm Payroll (NFP) report, a critical measure of US labor market health, is expected to show stable earnings growth but a potential dip in employment change figures compared to the previous month. High volatility is anticipated across indices, currencies, and commodities following the release.

Global Economic Indicators
Other key economic updates include Canada's labor market report, which mirrors the US NFP in significance. Additionally, the University of Michigan’s medium-term inflation expectations will provide further insight into consumer sentiment and price trends.