Gold Falls Following Strong NFP Report
The gold price ( XAU/USD ) fell by 0.57% on Friday after US nonfarm payroll (NFP) report showed stronger-than-expected job growth in May.
US labour data released on Friday showed stronger-than-expected job growth, with payrolls rising by 139,000 in May, according to the Bureau of Labor Statistics. While this figure marks a slight decline from April’s revised 147,000, it exceeded the consensus forecasts of 125,000, signalling underlying resilience in employment despite growing economic headwinds. The unemployment rate remained steady at 4.2%, suggesting continued tightness in the labour market.
The NFP data surprised the market, especially after a significantly weaker ADP private payrolls report earlier in the week. The report showed a mere 37,000 new jobs in May—well below the expected 110,000. The divergence between government and private-sector data has added complexity to the macroeconomic outlook, prompting investors recalibrating expectations for potential Federal Reserve monetary policy moves in the coming months.
Japanese Yen Falls on Weak Domestic Economic Data
The Japanese yen ( USD/JPY ) weakened towards 144,000 on Friday. The currency’s recent decline extended as markets turned cautious ahead of Friday’s US nonfarm payroll report.
The yen’s weakness was further influenced by renewed hopes for progress in US–China trade talks following a call between Presidents Donald Trump and Xi Jinping. However, the lack of tangible developments kept investor sentiment guarded.
Domestically, Japan’s economic outlook faced headwinds after household spending unexpectedly declined in April, signalling that elevated prices continue to erode consumer demand. The disappointing data adds to the challenges the Bank of Japan (BoJ) faces as it assesses the appropriate timing for its next policy move. Nonetheless, BoJ Governor Kazuo Ueda reiterated the central bank’s readiness to raise interest rates if inflation and economic conditions align, supporting the view that Japan remains on a path towards policy normalisation.
USD/JPY fell during Asian and early European trading sessions. Today, the macroeconomic calendar is relatively uneventful for USD/JPY, so the short-term bullish trend may continue despite the resistance level at 144,200–145,000.
Better-than-Expected NFP Data Weakens Euro
The euro ( EUR/USD ) fell by 0.23% against the US dollar (USD) on Friday following the stronger-than-expected nonfarm payroll (NFP) report.
The data showed that 139,000 new jobs were added in May, exceeding the 125,000 forecast by economists. While the headline figure temporarily boosted the greenback, a downward revision to April’s numbers moderated enthusiasm and highlighted the fragile momentum in the labour market. This data came against a backdrop of broader economic uncertainty, with investors assessing the impact of prolonged tariff negotiations and a potential slowdown in economic activity.
Despite Friday’s losses, the euro remains on track for a modest weekly gain amid lingering concerns over stalled US–China trade talks and geopolitical tensions. Market sentiment was further clouded by the lack of progress in a recent phone call between Donald Trump and Xi Jinping, which weighed on the US dollar. Additionally, a public dispute between President Trump and Elon Musk added to market volatility.
EUR/USD edged higher during Asian and early European trading sessions. The macroeconomic calendar is rather light today, so the established trend will likely continue. Low volatility may also prompt traders to take profits on long positions, potentially triggering a temporary sell-off in EUR/USD.