Yen Crushed, Commodities Bounce, Eyes Now on U.S. Jobs Data

Hello traders, welcome to Friday — the final trading day of the week and the start of the European session. After Thursday’s excitement, today begins with a mix of consolidation and anticipation. Let’s take a look at what’s shaping the markets this morning.

Thursday was dominated by key macro events and earnings from some of the world’s biggest tech players. First, the Bank of Japan held rates steady as expected, but the accompanying statement and tone weighed heavily on the yen. Japanese yen was sold aggressively, making it the weakest currency on the day and continuing its decline into Friday.

The US, meanwhile, delivered a stronger-than-expected ISM Manufacturing PMI reading at 48.7 — a number that, while still contractionary, beat expectations and supported the dollar for much of the session. However, Friday morning brings some mild pullback on the greenback, suggesting a cautious mood ahead of the highly anticipated Non-Farm Payrolls report due later today.

On the earnings front, Thursday brought big releases after the bell. Apple and Amazon both beat earnings expectations, but the pre-market reaction has been surprisingly muted. Apple is down around 3% and Amazon off about 2% in early trading, suggesting investors were looking for more upside or guidance clarity. Before today’s open, we are awaiting results from energy giants Exxon Mobil and Chevron, which could sway sentiment in the energy sector.

Speaking of energy, oil is showing a modest bounce on Friday after a brutal week of declines. Brent and WTI are both slightly higher in early European trading — a classic take-profit rebound after strong bearish pressure. However, the broader trend remains weak unless we see a decisive reversal and volume support.

Gold and silver are also staging a small recovery this morning after dropping for most of the week. The rebound appears corrective, and traders should be cautious about reading too much into the move unless key resistance levels are breached.

Indices remain in bullish territory. Futures in Europe are up modestly, and the mood remains positive, especially with recent tech earnings offering some cushion.

To wrap up: Friday will be all about the US Non-Farm Payrolls, expected at 138,000, and how markets react to any surprises. Ahead of that release, traders seem cautious but still leaning bullish on risk assets, while taking profits in commodities and reassessing currency positions.

Stay tuned — NFP could shift the tone heading into the weekend.

Source: https://www.axiory.com/analytics/market-news/yen-crushed-commodities-bounce-eyes-now-on-u-s-job