Here is what you need to know on Friday, July 7:
The US Dollar (USD) is having a hard time finding demand early Friday as investors stay on the sidelines while waiting for the US Bureau of Labor Statistics to release the labor market data for June. Meanwhile, the cautious market stance stays intact amid rising global bond yields, with US stock index futures trading in the red in the European morning. Statistics Canada will also release the June jobs report later in the day and European Central Bank (ECB) President Christine Lagarde will be delivering a speech.
US Nonfarm Payrolls Forecast: June NFP release expected to show moderating job creation.
Upbeat macroeconomic data releases from the US helped the US Dollar Index (DXY) edge higher during the American hours on Thursday. The monthly data published by the ADP revealed that employment in the private sector 497,000 in June, surpassing the market expectation of 228,000 by a wide margin. Additionally, the ISM Services PMI improved to 53.9 from 50.3. The DXY, however, lost its traction in the late American session and closed in negative territory, snapping a three-day winning streak.
EUR/USD registered modest gains on Thursday but failed to stabilize above 1.0900. Early Friday, the pair moves sideways slightly below that level. Earlier in the session, the data from Germany showed that Industrial Production contracted 0.2% in May. In an interview with La Provence on Friday, Lagarde reiterated that they still have work to do to bring inflation back down to their target but this comment was largely ignored by market participants.
GBP/USD climbed toward 1.2800 on Thursday but erased a portion of its daily gains after the US data. Nevertheless, the pair registered its highest daily close in 10 days and was last seen holding steady at around 1.2750.
USD/JPY stays under bearish pressure and continues to stretch lower toward 143.00, with the Japanese Yen benefiting from the risk-averse market atmosphere.
Gold price came within a touching distance of $1,900 amid surging US T-bond yields on Thursday. XAU/USD stages a technical correction and trades above $1,910 early Friday.
US June Nonfarm Payrolls Preview: Analyzing Gold price's reaction to NFP surprises.
Bitcoin closed in the red for the third straight day on Thursday before stabilizing above $30,000 early Friday. Ethereum lost more than 3% on Thursday and was last seen consolidating its losses at around $1,850.
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 stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.