Market whiplash still a concern ahead of US unemployment data

Volatility in Asian trade remained high overnight, as Japanese markets took a tumble in early trading sessions, falling over 2.5% before recovering back to a positive state.

With the Yen’s gains of 0.9% vs USD evaporating in the same session. GBP/EUR also hit a 4-month lows as traders increase bets on Bank of England rate cuts.

There are plenty of reasons for investors to be cautious as fears over a U.S hard landing remain high alongside a huge unwind of Yen carry trades and fears of an AI bubble.

With US recession fears still in the background, all eyes will be on the Unemployment claims in the US today. After Fridays poor non farm payrolls reading enhanced fears of an economic downturn, traders will be paying a keen eye on Richmond Fed’s Thomas Barkin for any clues on monetary guidance.

As vice president Harris and new running mate Tim Walz hit the campaign trail President Trump decided to send his number two JD Vance along for the ride. The Democrat rallies held in Michigan and Wisconsin were met by Vance’s arrival shortly afterwards as the Ohio Senator decided to flank Harris by speaking to reporters attacking Bidens immigration policies. The tactical stunt from the Republicans appears to be an attempt to win votes beyond Trumps dedicated base.

Israel remains on high alert over fears that a retaliation strike from Iran are imminent. As we approach the first year’s anniversary since the start of the war in Gaza, there are fears that should Hezbollah attack there could be an escalation into all our regional war. Military and hospitals remain on high alert in Israel and residents told to stay near protected areas.

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