NZD strengthens amid global risk appetite and commodity price gains

Key Movers

This week, the U.S. dollar (USD) experienced a modest rebound against major currencies, though it remains under pressure due to ongoing economic and political uncertainties. The DXY, which measures the USD against a basket of major currencies, opened the week at 96.77 and closed at 97.76 on July 10, reflecting a 0.98% weekly gain. While the USD showed resilience this week, it remains vulnerable to ongoing trade tensions and potential shifts in Federal Reserve policy. Investors will be closely monitoring upcoming economic data and geopolitical developments for further direction.

In the week ending July 4, U.S. initial jobless claims unexpectedly declined by 5,000 to a seasonally adjusted 227,000, falling below economists' expectations of 235,000. This marks the lowest level in seven weeks, suggesting continued resilience in the labor market despite broader economic uncertainties. Continuing claims, which reflect the number of individuals receiving unemployment benefits after an initial claim, increased by 10,000 to 1.965 million—the highest level since November 2021. This rise indicates that while fewer individuals are newly unemployed, those who are jobless are experiencing longer durations of unemployment.

As of the market close on July 10, the S&P 500 index reached a new record high, closing at 6,280.46, up 0.3% for the day. This marked the second consecutive day of gains, driven by strong performances in sectors like airlines and technology. Delta Air Lines surged 12% following an upbeat earnings forecast, while WK Kellogg jumped 30.6% amid acquisition news. Overall, the S&P 500's performance this week reflects investor optimism, particularly in sectors poised for growth, while also highlighting the need for caution amid potential market headwinds.