Bond markets are reeling, uncertainty about Trump's policies is rising – and now comes the first Nonfarm Payrolls release of 2025. Gold, Stocks and the US Dollar are set to rock. Join our live coverage by text or follow Wayne McDonnell's live show:
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Nonfarm Payrolls are released at a delicate time
Will the Federal Reserve (Fed) refrain from rate cuts in 2025? That is what some market participants fear after several strong data points. Yet even relatively dovish commentary from Christopher Waller, a Governor at the bank, failed to soothe investors.
Why? The world seems much more uncertain ahead of the inauguration of Donald Trump as US President for the second time. Incessant talk of higher tariffs, military invasions and various contradictory commentary by surrogates about immigration keep markets on edge.
In general, a strong Nonfarm Payrolls (NFP) release would boost the US Dollar even further. Gold would retreat in response to higher Treasury yields, and the yieldless precious metal would suffer. However, Gold enjoys robust demand, and only a major yield surge would inflict significant damage.
Stocks had been rising with upbeat data, but now they are back to a risk-off mode – good news for the economy is bad news for equities. To rise, bad news about the economy are needed.
All in all, a wild event is due.
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