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
AUD/USD: Next upside target comes at 0.6550
AUD/USD managed well to shrug off the marked advance in the Greenback as well as geopolitical tensions, regaining the area above the 0.6500 hurdle ahead of preliminary PMIs in Australia.
EUR/USD: Further losses now look at 1.0450
Further strength in the US Dollar kept the price action in the risk-associated assets depressed, sending EUR/USD back to the 1.0460 region for the first time since early October 2023 prior to key releases in the real economy.
Gold faces extra upside near term
Gold extends its bullish momentum further above $2,660 on Thursday. XAU/USD rises for the fourth straight day, sponsored by geopolitical risks stemming from the worsening Russia-Ukraine war. Markets await comments from Fed policymakers.
Ethereum Price Forecast: ETH open interest surge to all-time high after recent price rally
Ethereum (ETH) is trading near $3,350, experiencing an 10% increase on Thursday. This price surge is attributed to strong bullish sentiment among derivatives traders, driving its open interest above $20 billion for the first time.
A new horizon: The economic outlook in a new leadership and policy era
The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.
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.