Dollar resurfaces awaiting NFP, gold retreats, Musk breaks with Bitcoin

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This is what you need to know to trade today Friday June 4:

Markets are in a temporary calm ahead of critical Nonfarm Payrolls and after the dollar rose in response to a trio of bullish US figures.Gold is on the defensive amid rising U.S. bond yields. Treasure. Bitcoin suffers after Musk’s comments. Canada’s employment report and headlines about the virus are also in the spotlight.

Solid US data: ADP’s private sector labor market figures increased by 978,000 in May, much better than expected and jobless claims fell below 400,000. Perhaps most importantly, the ISM Service Purchasing Managers Index beat estimates by 64 points, showing strength in the largest sector in the United States.

The component of Prices Paid reached the highest level since 2005, and is the most recent evidence that the inflation is increasing. The Federal Reserve appears to be taking small steps toward downsizing and that is perhaps the strongest bullish driver for the dollar. Jerome Powell, Chairman of the Federal Reserve, will speak before the employment report, but on climate change and not on monetary policy.

Non-Farm Payrolls: The economic calendar points to an increase of 664,000 jobs in May after the disappointing 266,000 in April. Substantial revisions and skewed figures due to seasonal adjustments can provide an additional layer of confusion for markets.

Watch:

US Non-Farm Payroll Forecast: Questions That Need Answered
NFP Quick Look: Terrible Figures Show Overheating Theory Still Relevant For Stock Markets Only

Canada also publishes its labor market figures, with a small job loss expected in May, following the close of April.

Canada Jobs Preview Report: Erratic Data Will Shape USD / CAD Battle With 1.20

The pair EUR/USD it fell to 1.21 and awaits a speech from the President of the European Central Bank, Christine Lagarde. The GBP/USD fell below 1.42, also amid concerns that the Delta variant of COVID-19 would delay the UK’s planned reopening on June 21.

The oro it has been hit hard by the rebound in Treasury yields, a side effect of the dollar storm. The precious metal fell below $ 1,870.

cryptocurrencies: Tesla founder tweeted a heartbroken emoji and put it aside for a Bitcoin. The influencer contributed to a sell off on the granddaddy of digital assets. On the other hand, Dogecoin is backed by its imminent listing on Coinbase, one of the largest exchanges in the world.

Virus: Cases in the US and Europe continue to decline rapidly, while rising infections in Asia are cause for concern. The Tokyo Olympics are in danger.

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