Economists predict that employment data could be revised downwards by 800,000 people. This could indicate that the Fed is behind its “maximum employment” target.
While markets have fully priced in the expectation of a 25 basis point interest rate cut, the probability of an aggressive 50 basis point move has risen to 12%.Increased expectations of interest rate cuts have pushed gold prices to a record high of $3,659 per ounce.
Political developments are also in the focus of the markets: The resignation of Japanese Prime Minister Shigeru Ishiba, the dismissal of François Bayrou in France, and the sudden change of finance minister in Indonesia have attracted attention.
Despite these fluctuations, analysts do not expect serious pressure on the euro.The European Central Bank is expected to keep interest rates unchanged this week. Meanwhile, the Indonesian rupiah depreciated by 0.8% following a change in the finance minister, and the central bank resorted to bond purchases to stabilize the market.
