Sentiment softens again after US Services PMI miss – Market wrap for the North American session - August 5

[Redator]

Log in to today's North American session recap for August 5, 2025.

Yesterday's rally in equities was very strong and despite recovering beyond their pre-NFP levels, other assets had shown some discrepancies warranting caution.

And these discrepancies did not lie, commodities like Oil and Gold traded the weekly open in lower economic outlook territory (Oil down, Gold up) and the same flows repeated today after the Miss in the US Services PMI – You can access the details of the report right here.

It is always essential to look at the broad market picture to get an understanding of what the story of the day is, and yesterday's rebound in Equities really just seems to have been one of oversold dip buying at a lower bound of an upwards channel – I invite you to check the purple notes on the chart below.

Nasdaq 8H Chart, August 5, 2025 – Source: TradingView

Sentiment has been hurt from Friday's NFP report and with FED communications pointing in that direction, economists and Market participants will now turn into risks to the Economy following the implementation of the US Tariffs.

About Tariffs, Canada and Switzerland are on the move to negotiate further the rough tariffs currently in place – track the headlines regarding this closely.

On the geopolitical side, Russia might be inclined to accept a truce as the US keeps applying monetary pressure to stop the conflict by imposing further sanctions on Russian Oil purchasers (like India for example).

Read More: USDCHF – Is it the end of the run for the Swiss Franc?

Daily Cross-Asset performance

Cross-Asset Daily Performance, August 5, 2025 – Source: TradingView

Most assets are closing red on the session after the temporary boost from yesterday's session.

Oil keeps getting wrecked (with WTI close to $65) and Gold keeps grinding higher, I would suggest to keep watching these two to spot sentiment in the waiting for more data.

Other indices around the world have held strongly compared to the US ones, particularly the Canadian TSX (not on the chart) closing the session up 2%.

A picture of today's performance for major currencies

Currency Performance, August 5 – Source: OANDA Labs

Forex movement has been very muted throughout majors as the US Dollar had started the day rallying before giving back its gains after the miss in US PMIs.

The Yen has given up some of its strength, with Participants not seeing what they wanted to see from the most recent Bank of Japan Minutes – There is surely some profit-taking from the ongoing mean-reversion in JPY pairs.

Earnings Season: Who is releasing their numbers tomorrow

Earnings Calendar for August 6th – Source: Nasdaq.com

Some big names are releasing their earnings tomorrow – McDonalds, Disney, Uber are releasing their numbers in the pre-open, Doordash and AirBNB will release their own numbers after the close

A look at Economic data releasing in tonight and tomorrow's sessions

For all market-moving economic releases and events, see the MarketPulse Economic Calendar.

There will be a big focus in the upcoming sessions on APAC-Centric data, particularly with New Zealand. Expect their Employment numbers in this evening's session.

Also do not forget the European Retail Sales numbers releasing overnight at 5:00 A.M. ET.

The North American Session will have all the attention on FED Speakers as players await a different stance after the Friday data.

FED's Collins and Cook (both voters) are speaking at a Panel on the US and global Economy at 14:00 ET followed by FED's Daly (non-voter) speaking at Anchorage at 16:00.

Safe Trades!

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