Global markets breathed a sigh of relief after the announcement of a ceasefire between Israel and Lebanon, although the shadow of a US interest rate hike began to haunt investors.
Brent crude oil prices fell around 0.7 percent to $97.10 a barrel immediately after the news of the ceasefire between Israel and Lebanon was announced.
This slight easing of tensions gave the "black gold" market room to calm down after days of supply concerns due to intense fighting in the Gulf region.
Amid the Middle East conflict, the US dollar continues to be the main choice of investors as a safe haven asset. Meanwhile, gold, which does not provide interest, had to accept a price drop of 1.2 percent to $4,434 an ounce.
The latest data showed that companies in the United States added the most workers since January 2025, proving that the labor market is still resilient.
This resilience reinforces expectations that the Federal Reserve (Fed) may raise interest rates in the near term to tame stubborn inflation.
Asian Currencies in Focus
In Asia, the Japanese Yen continued to hover around the 160-per-dollar level, as investors digested signals from Bank of Japan Governor Kazuo Ueda. The probability of a rate hike in Japan this month is seen as increasing, but absolute certainty remains a question mark for traders.
The focus now shifts entirely to the upcoming US government NFP monthly payrolls report. If the labor data continues to show extraordinary strength, we may see the US Dollar gain strength, thus putting continued pressure on regional currencies and commodities.
