Dollar Softens as Euro, Metals Rise Ahead of U.S. Jobs Data (09.05.2025)

Markets traded cautiously in Friday’s Asian session ahead of the key U.S. Nonfarm Payrolls report. The euro rebounded to 1.1670 as traders awaited Eurozone Q2 GDP, with expectations of 1.4% YoY growth, while the U.S. dollar weakened on rising Fed cut bets after soft labor data. 

The yen held near 148.50, with focus on NFP for confirmation of labor market cooling. Gold stayed near record highs at $3,352, supported by safe-haven demand, while silver advanced to $40.85, both underpinned by expectations of Fed easing. The pound steadied above $1.34, though fiscal uncertainty limited upside.

Euro Gains Ahead of GDP, Dollar Softens

EUR/USD trades near 1.1670 in Friday’s Asian session, rebounding from prior losses. The Euro is supported ahead of Eurozone Q2 GDP data, expected at 1.4% YoY and 0.1% QoQ. A cautious ECB stance, with Schnabel and Šimkus signaling no urgency for further cuts, also lends support. Meanwhile, the US Dollar weakens as Fed cut bets rise after soft US jobs data, with CME FedWatch showing over a 99% chance of a 25 bps September cut.

Resistance is at 1.1730, while support is at 1.1620.

USD/JPY Holds 148.50 Ahead of NFP

USD/JPY held near 148.50 in early Asian trade Friday as markets awaited the August NFP report. Thursday’s rise in jobless claims and weak ADP payrolls pointed to a cooling labor market, increasing Fed cut expectations. CME FedWatch now shows nearly a 100% chance of a 25 bps September cut, up from 87% a week ago, weighing on the dollar.

Resistance is at 149.30, with support at 147.20.

Gold Holds Near Record Highs Ahead of NFP

Gold edged higher in Friday’s Asian session, extending its rebound from $3,500 and staying near record highs. The metal is supported by expectations of Fed rate cuts starting in September and trade-related safe-haven demand, though gains are capped by firm equities and overbought conditions. Traders await the U.S. NFP report for fresh direction on policy and gold’s outlook.

Resistance is at $3,585, with support at $3,500.

Pound Steadies Above $1.34 Ahead of NFP

The British pound steadied above $1.34 as bond volatility eased and traders awaited U.S. NFP data. Weak U.S. labor figures supported Fed cut bets, while the pound faced pressure from UK fiscal uncertainty ahead of November’s budget. BoE Governor Andrew Bailey signaled caution, noting more doubt over the timing of cuts. Markets now expect the BoE to hold rates until at least April.

Resistance is at 1.3525, with support at 1.3330.

Silver Rises Ahead of U.S. NFP Report

Silver edged up to $40.85 in Friday’s Asian session, supported by a weaker dollar and stronger Fed cut bets. Softer U.S. data, including higher jobless claims and weak ADP payrolls, signaled a cooling labor market and increasing demand for non-yielding assets. Investors now await the U.S. NFP report for further policy clues.

Resistance is at $41.30, with support at $40.20.