Evening Showdown with NFP: Watch for Heightened Volatility Across Asset Classes

Market Overview

On Thursday, following a phone call between the Chinese and U.S. presidents, the U.S. Dollar Index initially rebounded sharply. Despite a brief reversal, it held above the key support level of 99, ultimately closing at 98.813, down 0.42%. U.S. Treasury yields rose across the curve, with the 10-year yield settling at 4.391% and the 2-year at 3.928%. Gold experienced extreme volatility, with spot prices spiking to as high as $3,400/oz before a swift pullback erased most of the intraday gains. Gold closed down 0.58% at $3,352.83. Silver, on the other hand, surged past the $36/oz threshold for the first time since February 2012, ending the session up 3.33% at $35.65.

Hot Topics to Watch

● Tariff Landscape Evolving, Uncertainty Remains

Japanese media reported that the U.S. is showing flexibility in reducing additional reciprocal tariffs on Japan. Sources say Washington and New Delhi may be close to finalizing a temporary deal involving tariff cuts and market access. Former President Trump also mentioned the prospect of a "great trade deal" with Germany.

● Bilateral U.S.-China Leadership Call

Chinese President and U.S. President  held a high-level phone conversation, discussing international affairs, bilateral relations, and global economic cooperation. The dialogue underscored a mutual commitment to stability and collaboration amid a volatile global environment. Both sides agreed to maintain open lines of communication at the leadership level to inject further momentum into bilateral ties.

Key Events to Watch (GMT+8)

• 17:00 – Eurozone Q1 Final GDP YoY

• 17:00 – Eurozone April Retail Sales MoM

• 20:30 – U.S. May Nonfarm Payrolls (seasonally adjusted, in thousands)

• 20:30 – U.S. May Unemployment Rate

• 20:30 – U.S. May Average Hourly Earnings MoM & YoY