Daily Global Analysis By zForex

[Z Forex]

Dollar Gains on Strong Jobs Data (06.08.2026)​

The dollar index held near 100 after gaining more than 1% last week, supported by strong US employment data. The economy added 172,000 jobs in May, well above forecasts, while unemployment remained at 4.3%.

Markets now assign nearly 70% probability to a December Fed rate hike, although rates are expected to stay unchanged in June.

Japan's 10-year government bond yield rose to around 2.7%, a one-week high, tracking higher US yields. Strong US data and higher oil prices linked to Middle East developments added to inflation concerns, while expectations for future BOJ tightening remained in place. Solid first-quarter GDP growth and a healthy current account surplus also highlighted economic resilience.

The US 10-year Treasury yield climbed to 4.57%, its highest level in two weeks, as stronger labor-market data reinforced expectations for tighter policy later this year. Rising oil prices and ongoing geopolitical tensions continued to support inflation concerns, keeping bond markets focused on the interest rate outlook.

Economic Calendar​

• The euro slipped below $1.1540, erasing earlier gains and falling to its weakest level since early April
• The Japanese yen weakened past 160 per dollar on Monday, crossing a threshold that frequently sparks official market intervention.
• The British pound gave up early gains, falling below $1.34 to its lowest point since mid-May as the USD rallied on better U.S. labor data.
• The offshore yuan edged up to 6.78 per dollar, recovering modestly after last week's decline.
• Gold traded near $4,300 after falling almost 5% last week, its weakest performance in two months.
• Silver hovered near $68 on Monday following last week's near 10% tumble to a two-month low
• The Nasdaq 100 fell to around 28,957, losing 4.77% with strong US jobs data.
• Bitcoin traded near $63,100, stabilizing after a sharp decline from levels close to $71,000.
• The Nasdaq 100 fell to around 28,957, losing 4.77% as strong US jobs data.

Check more on zForex.com - Technical Outlook on Charts​

Euro Slumps Past 1.1540
Gold Stabilizes Near 4,300
Yen Breaches Critical 160
Pound Slips Under 1.34
Silver Plummets Near 68

 

[Z Forex]

Sell Signals and CPI Sirens​

A closely watched Wall Street sentiment has moved back into “sell signal” territory for the third week in a row. The warning comes while global equities remain near record highs, supported by strong inflows into stocks, high-yield bonds, and emerging market assets.

This does not mean a market crash is coming. But in the past, similar readings have often been followed by mild weakness in global stocks over the next one to three months.

The bigger risk now is inflation. Markets have been pricing in a softer policy path from central banks, but sticky CPI data could challenge that view. If inflation remains high, investors may need to rethink expectations for rate cuts and liquidity support.

Bond markets are also flashing a warning. Higher yields can weigh on equity valuations, especially in growth and technology shares.

For now, the message is clear. The market still has momentum, but confidence is becoming stretched. CPI data, central bank guidance, and bond yields may decide whether the rally continues or turns into a sharper correction.