DBG Markets: Market Report for August 7, 2026

Markets Brace for NFP Report: What May Come Next？

EURUSD, USDJPY, Gold & Silver Analysis

Wall Street edged lower on Thursday, August 6, 2026, pulling further away from recent record peaks as tech stocks faced broad selling pressure following weak corporate guidance. Meanwhile, Gold experienced a brief pullback alongside a modest bounce in the US Dollar after its strong breakout earlier in the week.

NFP Preview: Inflation Expectations & Labor Dynamics

Recent easing in energy costs has helped temper broader inflation fears, while Wednesday's weak ADP private payrolls report reinforced signs of a cooling US labor market. Together, these drivers have significantly unwound aggressive market bets on Federal Reserve rate hikes.

NFP Scenario Breakdown

· Dovish Outcome (Softer NFP Print): A weaker-than-expected payrolls number would reinforce labor market cooling, reducing September rate-hike odds further. This scenario favors renewed weakness in the US Dollar. Additionally, if Middle East geopolitical friction continues to ease, safe-haven bids could fade, creating mixed cross-currents for Gold and safe-haven assets. Overall, market positioning leans toward a dovish outcome being more likely.

· Hawkish Outcome (Hotter NFP Print): A stronger-than-expected payrolls beat would keep a September rate hike firmly on the table. This scenario would trigger a sharper rebound in US Treasury yields and lift the US Dollar, putting short-term pressure on risk assets and non-yielding bullion.

Technical Analysis & Major Asset Outlook

US Dollar Index & Major Currency Pairs

The US Dollar Index experienced a minor bounce on Thursday but remains firmly capped beneath the 100.00 psychological resistance level, keeping the broader bearish structure intact.

USD Index, H4 Chart

Technically, as long as the Dollar Index remains capped below 100.00, any technical rebound is still viewed as a shorting opportunity.

EUR/USD: Pullback Keeps Uptrend Valid Above 1.1460

Turning to major currency pairs, despite a brief retreat against the rebounding greenback, EUR/USD maintains a constructive technical posture.

EURUSD, H4 Chart

The pair continues to trade within an established bullish trajectory following its recent consolidation breakout, supported by a bullish moving average alignment on the 4-hour chart. Near-term pullback support rests at 1.1500, with primary structural support at 1.1460.

USD/JPY: Near-Term Rebound Potential Toward 159.00

USD/JPY picked up modest bids following its steep post-intervention sell-off, but remains in a cautious technical state due to underlying weakness in the Japanese Yen. Should NFP beat expectations and drive Dollar strength, USD/JPY stands out as an ideal pair for long setups.

USDJPY, H4 Chart

Another leg higher toward 159.00 remains technically feasible as price action tests short-term moving averages. Watch the 50-period Moving Average on the 4-hour chart closely.

Precious Metals: Highly Dependent on Dollar & Yield Trajectory

Gold (XAU/USD): Bullish Momentum Intact

Spot gold pulled back slightly on Thursday as the US Dollar bounced, but buyers successfully defended the $4,200 structural demand floor.

XAUUSD, H4 Chart

Gold's near-term trajectory will be dictated by the immediate reaction in Treasury yields and the Dollar post-NFP. Holding firm above $4,200 – $4,250 keeps the broader bullish expansion intact. A soft NFP print could catalyze a retest of $4,300, while a hot NFP print risks a deeper test of $4,200 support.

Spot Silver (XAG/USD): Strong Reversal Signals Buying Interest

Silver staged a strong setup, tracking Gold's broader technical footprint by mounting a robust bullish reversal off its recent swing lows. Technically, the $57 – $60 region has established a solid demand bottom.

XAGUSD, H4 ChartBottom Line & Asset Summary

Wall Street paused as tech guidance weighed on sentiment, while markets adopted a wait-and-see stance ahead of Friday's US Non-Farm Payrolls report. With CME FedWatch September rate-hike odds down to 55%, a soft NFP print is expected to reinforce labor cooling, keep the US Dollar suppressed below 100.00 resistance, and catalyze upside momentum for Gold and Silver above key support levels.

· US Dollar Index: Bearish Bias Intact; rallies capped beneath 100.00 resistance offer shorting setups unless NFP beats strongly.

· EUR/USD: Bullish Structure Valid; defending 1.1500 pullback support, with broader uptrend intact above 1.1460.

· USD/JPY: Tactical Long Option on Hawkish Print; watching 4-hour 50-MA for a potential extension toward 159.00 and 160.00 resistance.

· Spot Gold (XAU/USD): Bullish Reversal Active; defended $4,200 floor, eyeing a soft NFP print to catalyze a retest of $4,300.

· Spot Silver (XAG/USD): Bullish Reversal Confirmed; reclaimed $60/oz demand floor, targeting a retest of $66.00 upon clearing $62.70 resistance.