The U.S. dollar index (DXY) fell to a two-week low on June 29, closing down 0.52%. This decline followed a weaker-than-expected June payroll report, which showed U.S. nonfarm payrolls rose by only 57,000, far below the anticipated 113,000. The unemployment rate dropped unexpectedly by 0.1% to a one-year low of 4.2%, indicating a stronger labor market.
Meanwhile, the euro rose 0.49% against the dollar, bolstered by Italy’s unemployment rate falling to a record low of 5.0%. In Japan, the yen increased by 0.92%, supported by speculation of potential government intervention due to the currency approaching a 39-year low against the dollar. Reports indicate that the Japanese Finance Minister mentioned discussions with U.S. Treasury officials regarding coordinated currency action.
In commodities, gold prices increased by 1.06%, while silver gained 0.91%, driven by the dollar’s decline and reduced chances of Federal Reserve tightening due to weaker employment data. Notably, China’s central bank reported a significant increase of 320,000 ounces in gold reserves, marking the largest monthly rise in 17 months.
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