Nonfarm payrolls declined by 23,000 in July, missing expectations for job growth, while the unemployment rate edged down to 4.1%. BLS also revised May and June payrolls lower by a combined 103,000, putting September Fed pricing back on labor-market data.
ADP said private payrolls rose 44,000 in July, below the 75,000 consensus cited by market reports and down from June’s 98,000 gain, putting Friday’s jobs report back in focus.
The yen strengthened about 5% and moved to 157 per dollar from just above 163 after coordinated intervention. Strategists warned that negative real rates and gradual BoJ normalization may limit follow-through.
WTI fell more than 6% to $79.10 a barrel and Brent lost more than 5% to $82.99 after President Donald Trump said a planned Iran strike was called off. The move repriced the Strait of Hormuz risk premium after weeks of supply-route stress.
The Bank of Japan held its policy rate at 1% in an 8-1 vote while warning core inflation could move clearly above 2% from September. The yen had traded near 163 per dollar before a reported intervention-related move lifted it as far as 157.96.
The FOMC held the federal funds target range at 3.50%-3.75% in a 9-3 vote on July 29. Beth Hammack, Neel Kashkari and Lorie Logan dissented in favor of a 25 bps hike as inflation stayed above the 2% goal.
MAS increased the appreciation rate of the Singapore dollar nominal effective exchange-rate policy band on July 27, with WSJ polling showing only 1 of 10 economists expected a tightening.
Kuwait Oil Company signed a $16.0B infrastructure partnership for its crude-oil pipeline network. Blackstone, Brookfield and KKR will collectively hold 49%, while KOC keeps 51% and operational control.
The ECB kept its deposit facility rate at 2.25%, its main refinancing rate at 2.40%, and its marginal lending rate at 2.65% on July 23. The Governing Council cited volatile energy prices after the Middle East conflict and said the full inflation impact has not yet played out.
Oil briefly touched $90 after a fresh tanker-strike shock around Iran, then gave back gains as Tehran said U.S. talks could proceed. The move keeps Hormuz risk, shipping insurance, and inflation-sensitive energy costs at the center of the week’s market pricing.
Iraq and Syria signed a memorandum to rehabilitate the Kirkuk-Baniyas crude line, part of roughly $60B in U.S.-Iraq agreements reported on July 17. AP reported a projected 2M barrels per day route that would reduce reliance on the Strait of Hormuz.
The Bank of Korea raised its base rate from 2.50% to 2.75% on July 16. The statement cited 3.2% CPI inflation, 2.5% core inflation and growth likely to exceed the prior 2.6% forecast.