Markets Eye Central Bank Policy Despite Strong Jobs Data; Dollar Rebounds While Stocks Retreat
• Markets focused on bets that central banks will cut rates despite solid US jobs data lending support to tighter policy narrative
• US dollar index remained under pressure but recovered amid a spike in Treasury yields
• EUR/USD approached 1.09 on upbeat PMIs but gave back gains as dollar rebounded
• USD/JPY extended gains, climbing above 150 level amid ongoing yen weakness
• Risk assets like stocks retreated while oil prices rose to monthly highs on geopolitical tensions