This is what you need to know to trade today Monday, July 5:
The dollar started the week with an attempt to gain ground after falling following the NFP employment report on Friday. Weak China services PMI data and COVID concerns are weighing on sentiment. OPEC + has yet to reach a deal, Bitcoin is backing down from weekend highs and low volume is expected later due to a US holiday.
NFP Nonfarm Payrolls showed an increase of 850,000 jobs in the United States in June, exceeding expectations, but accompanied by a moderate increase of 3.6% in wages and without substantial revisions. The United States continues to have about 6.8 million people out of the pre-pandemic workforce. For markets, the mix of robust growth and less inflationary pressures are “favorable conditions.”
See: US NFP Non-Farm Payroll Analysis: June Pleases Everyone
Aside from the deficiency within the details of the report, the post served as a catalyst to reverse some of the US dollar gains from earlier in the week. On Monday, Americans are on vacation due to the long Independence Day holiday, and the dollar is slightly off its lows.
See: NFP Quick Look: Buying the Dollar Fall? Healthy job growth will keep the Fed on track
Another reason for the dollar to recover comes from safe haven monetary flows. Caixin’s Chinese services PMI came in below estimates by 50.3 points, reflecting lackluster growth in the sector.
The rapid spread of the delta variant of the coronavirus is another reason for concern. The UK has over 24,000 daily cases and the strain is also moving across Asia and Europe. Concerns about contagion and somewhat weaker vaccine resistance also weigh on sentiment.
El raw WTI It is trading around $ 75, remaining at highs, as OPEC + members have not reached an agreement on increasing crude production. Negotiations continue.
cryptocurrencies: Bitcoin is trading below $ 35,000 after breaking above that level over the weekend. A crackdown on Binance appears to be one of the triggers to the downside. Ethereum is trading around $ 2,300.
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