 Risk aversion is intensifying in early US session after non-farm payroll report significantly missed expectations on all fronts. This follows yesterday's poor manufacturing data, which has already sparked discussions about a hard landing for the US economy. The weak job data is likely to fuel these concerns further, as stock futures are tumbling sharply, pointing to a notably lower open. In the financial markets, stock futures tumble sharply and are pointing to a sharply lower open. Meanwhile, 10-year yield is extending this week's steep decline and is set to challenge 3.8% mark. Dollar's reaction to these developments has been complex. It continues to decline against safe-haven currencies such as Yen and the Swiss Franc. However, it remains steady against commodity currencies due to the offsetting impact of diving Treasury yields and prevailing risk-off sentiment. The greenback is holding onto most of its gains against Sterling for the week but is showing weakness against the euro, which is also surging against the Pound... |
