Strong Jobs Data Shakes Bond Market, Fed Rate Hike Expectations Rise

Strong labor data could increase Fed rate hike expectations and provide short-term support for the DXY. However, with the RSI at 82, it is in overbought territory, and the price is above the SMA20/SMA50; this suggests the upward move may remain limited. The MACD is positive and above its signal line, with momentum still favoring buyers. A moderate upward bias is likely in the 1-3 day outlook, but the risk of profit-taking is high. Confidence level: medium.

Strong labor data supports the USD by increasing Fed rate hike expectations; this is an upward catalyst for USDJPY. The price is trading above the SMA20 and SMA50, and the 24-hour change is positive, indicating short-term momentum is upward. RSI is at 57, away from overbought territory, and MACD is slightly positive above the signal line. However, near the 158 level, intervention risk from Japanese authorities and the possibility that the news is already priced in limit upside potential. Therefore, a moderately bullish view is appropriate.

Strong labor data is reinforcing expectations of Federal Reserve rate hikes, pushing bond yields higher; this is putting pressure on equity valuations. The SPX has already fallen sharply (-3.3%) below its SMA20 and SMA50, with MACD negative and trading below its signal line. RSI at 24 places it in oversold territory; this could set the stage for short-term rebound buying, but momentum remains downward. With renewed rate hike expectations likely to limit risk appetite, the 1-3 day outlook is tilted lower. Nevertheless, given oversold conditions, the possibility of the decline slowing and choppy trading should not be ruled out.

Strong labor data is reinforcing expectations of Fed rate hikes, pushing bond yields higher and creating a negative backdrop for the growth-heavy NDX. The index has already fallen sharply by over 6% in 24 hours to 26,647, with RSI at 22 indicating oversold conditions and the price well below SMA20/SMA50. MACD is negative and below the signal line, confirming downward momentum. Although oversold conditions may open the door to short-term rebound buying, rate hike expectations could continue to suppress risk appetite. Therefore, in the 1-3 day outlook, downside risk is more dominant, but given high volatility, I maintain a moderate level of confidence.