Here is what you need to know on Monday, July 5:
The dollar has kicked off the week with an attempt to gain ground after falling in the aftermath of Friday's jobs report. Weak Chinese Services PMI and covid worries are weighing on sentiment. OPEC+ has yet to reach a deal, Bitcoin is off the weekend highs and low volume is expected later due to a US holiday.
Nonfarm Payrolls showed an increase of 850,000 US jobs in June, beating expectations for a change, yet accompanied with a moderate increase of 3.6% in wages and without substantial revisions. America is still some 6.8 million people short of its pre-pandemic workforce. For markets, the mix of robust growth and fewer inflationary pressures is a "Goldilocks" scenario.
US Nonfarm Payrolls: June pleases everyone
Apart from the shortcoming within the details of the report, the publication served as a trigger to reverse some of the greenback's gains earlier in the week. On Monday, US traders are off due to the long Independence Day holiday and the dollar is marginally off its lows.
NFP Analysis: Buy the dollar dip? Healthy jobs growth to keep Fed on tapering track
Another reason for the greenback to recover stems from safe-haven flows. The Chinese Caixin Services PMI missed estimates by 50.3 points, reflecting mediocre growth in the sector.
The rapid spread of the Delta variant of coronavirus is another reason for concern. The UK recorded over 24,000 daily cases and the strain is also moving through Asia and Europe. Concerns about contagion and somewhat weaker vaccine resistance also weigh on sentiment.
WTI Crude Oil is trading around $75, holding onto the highs as OPEC+ members have been failing to reach an agreement on raising crude output. Negotiations continue.
Cryptocurrencies: Bitcoin is trading below $35,000 after topping that level over the weekend. A crackdown on Binance seems to be one of the downside triggers. Ethereum is changing hands at around $2,300.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD extends recovery beyond 1.0400 amid Wall Street's turnaround
EUR/USD extends its recovery beyond 1.0400, helped by the better performance of Wall Street and softer-than-anticipated United States PCE inflation. Profit-taking ahead of the winter holidays also takes its toll.
GBP/USD nears 1.2600 on renewed USD weakness
GBP/USD extends its rebound from multi-month lows and approaches 1.2600. The US Dollar stays on the back foot after softer-than-expected PCE inflation data, helping the pair edge higher. Nevertheless, GBP/USD remains on track to end the week in negative territory.
Gold rises above $2,620 as US yields edge lower
Gold extends its daily rebound and trades above $2,620 on Friday. The benchmark 10-year US Treasury bond yield declines toward 4.5% following the PCE inflation data for November, helping XAU/USD stretch higher in the American session.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.