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Dollar recovers from NFP hit, markets bullish on quiet start to great week

This is what you need to know to trade today Monday, September 6:

The market sentiment is optimistic at the start of a new week this Monday, with major Asian indices rebounding 2%, while investors reject expectations of a gradual reduction in the purchase of Fed bonds amid a huge loss in US NFP nonfarm payrolls on Friday. The US economy added 235,000 new jobs in August compared to an expected increase of 750,000.

In addition, the increasing Concerns about the Chinese economic slowdown have raised hopes for more stimulus by the country’s authorities, which has added optimism to the market. However, low volume conditions due to the US holiday combined with Delta variant concerns of covid keep investors slightly on edge. The United States and Canada are on vacation, in observance of Labor Day.

The futures of the S&P 500 profit and loss alternate around 4,535, while 10-year US Treasury yields consolidate Friday’s strong rally above 1.30%. The US dollar is staging a rebound, taking cues from the recovery in Treasury yields.

When it comes to major currencies, the Antipodes are the biggest losers so far. The AUD / UD It is retreating to 0.7400 after the relentless rise in covid cases in New South Wales, falling oil and iron ore prices.

The NZD / USD retreats sharply below 0.7150 while the USD / CAD jumps to 1.2545. The WTI it loses 1.50% to test the $ 68 level after Saudi Arabia cut its crude price to Asia over the weekend. Oil price weakness is weighing on the CAD, as investors await Wednesday’s rate decision from the Bank of Canada (BoC) for a new orientation of monetary policy.

The EUR/USD It falls back to 1.1850 amid a broad rebound in the US dollar, although the decline appears limited amid expectations of reduced aid as the ECB meets Thursday. Meanwhile, the focus will be on eurozone investor confidence.

The GBP/USD trades around 1.3850, losing ground amid concerns about the Brexit. BBC News reported: “Business leaders, unions and academics have urged the UK and the EU to offer ‘balanced, tailored and reasonable’ solutions to the tensions caused by the post-Brexit trade deals for Northern Ireland.” Meanwhile, UK Prime Minister Boris Johnson is expected to push for an increase in national insurance to fund social care.

The price of oro it is holding below $ 1,830, retreating slightly from two-month highs of $ 1,834, as the bulls take a breather before initiating the next rally towards $ 1,850.

The cryptocurrencies remain in consolidated mode after the Bitcoin enjoy a good weekend above $ 51,000. The Ethereum it is preparing to target new all-time highs.

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