Global markets are experiencing a pronounced risk-off sentiment following weaker-than-expected employment data from the US and Canada. This has triggered a broad selloff in the US dollar, while safe-haven assets like the Japanese yen, Swiss franc, and gold have surged. As a result, the outlook for USD/JPY and USD/CHF remains bearish, while AUD/JPY and XAU/USD present bullish opportunities supported by both strong fundamentals and technical signals. Traders should consider short positions in USD/JPY and USD/CHF, and long positions in AUD/JPY and gold, while closely monitoring upcoming US inflation data and central bank decisions. Elevated volatility and correlation risks call for prudent trade management, including tight stop-losses and regular portfolio rebalancing to navigate rapidly shifting market dynamics.
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