This is what you need to know to trade today Friday July 9:
The dollar has resumed its gains, this time as yields change course and move higher. Concerns about the Delta variant of covid weigh on some markets. Oil, gold and bitcoin are far from highs. The focus is on Canada’s jobs report and speeches by Lagarde of the ECB and Bailey of the BoE.
US bond yields they have reversed course and have risen above 1.33% after several days of rapid declines that puzzled investors. The increase supports the USD across the board, including against the euro, which stood out with gains against the dollar on Thursday.
The EUR/USD it is trading below 1.1850 after moving to higher ground amid the European Central Bank’s announcement of a strategic review. The Frankfurt-based institution is now aiming for a symmetrical target of 2% rather than being a ceiling. Investors had priced in that pessimistic shift and appeared to be buying the euro in response to the lack of other substantial moves.
The ECB continues to target headline inflation rather than core prices. President Christine Lagarde will speak again on Friday.
See: Analysis of the ECB’s change in strategy: Lagarde is behind Fed pessimism, EUR / USD has room to rise
The GBP/USD it is trading below 1.38 as COVID-19 cases continue to rise, topping 32,000 in Thursday’s report. The rapid spread of the Delta variant threatens to derail Britain’s July 19 opening. The EU and the UK are in the spotlight for a new Brexit issue: Britain’s divorce law. A difference of around € 6 billion has yet to be resolved.
The British pound also came under pressure from pessimistic gross domestic product GDP figures for May, which showed an increase of just 0.8%, about half of initial expectations. Bank of England Governor Andrew Bailey is scheduled to speak later in the day and may shed light on the BoE’s plans.
The spread of coronavirus It has also been weighing on Asian populations, as Delta hits countries like Indonesia and Malaysia hard. Japan announced that the Olympics will be held without spectators.
China reported that inflation has slowed to 1.1% year-on-year in June, weaker than expected. Producer prices rose 8.8% last month, a high level but below the highs. The figures add up to a picture of a cool down time.
American Stock Markets fell on Thursday amid nervousness in bond markets and concerns about Delta’s spread in the United States. Despite having an abundance of vaccine doses, many in the world’s largest economy have yet to get their dose.
Canada publishes its employment report for June, and after two months of sharp declines, a substantial increase of more than 170,000 new jobs is expected. USD / CAD is trading around 1.25, moving in response to fluctuating gasoline prices. WTI crude is trading around $ 73.00, close to the lows it touched in response to speculation that the UAE would increase production.
See: Canada Jobs Report Preview: Can USD / CAD Fall Amid Summer Hiring Boom?
Bitcoin is around $ 33,000, extending its progressive decline. Ethereum remains above $ 2,100.
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