This is what you need to know to trade today Monday, June 7:
Market sentiment is mixed after US NFP nonfarm payrolls finished below estimates and the country’s top financial official accepted rising inflation. Bitcoin remains volatile while oil is retreating from the highs. News about the coronavirus and responses to the G-7 tax deal will draw investors’ attention.
Higher rates would be an advantage: The United States Secretary of the Treasury, Janet Yellen said that an increase in inflation and interest rates would be a sign of positive development.. The former president of the Federal Reserve commented that consumer prices could advance at an annual rate of 3%.
Yellen and her fellow G-7 finance ministers agreed to a minimum global corporate tax rate of 15%, a move that could boost revenues for globe-trotting tech companies.
Treasury yields they have risen marginally, with the 10-year bond yield touching 1.57%, but still below levels seen before Friday’s NFP nonfarm payroll report. The economy created just 559,000 new jobs in May, below expectations. Additionally, the revisions added just 12,000 to April’s pessimistic figure.
See: NFP Analysis: Opportunity to Buy the Dollar? Two reasons why the USD slump may be temporary
The dollar fell in response and is struggling to recover. The XAU / USD bounced from the lows but remains below the $ 1,900 level.
Germany: Chancellor Angela Merkel’s CDU party won the regional elections in Saxony-Anhalt, exceeding expectations and giving the center-right party a boost ahead of the September general elections. EUR / USD maintains gains above 1.2150, while the focus is now on Sentix investor confidence.
UK companies fear that the reopening scheduled for June 21 will not take place due to the increase in COVID-19 cases. The Delta strain first identified in India is now dominant and 40% more transmissible than the Kent variant, now called Alpha. GBP / USD hovers around the 1.4150 region, in familiar ranges.
China reported a 27.9% year-on-year increase in exports in May due to increased global demand, while its imports also rose. However, both figures fell short of expectations.
The raw petróleo WTI it has dropped below $ 70 after surpassing that region, reaching the highest level since 2018. Prospects for higher demand are supporting crude prices.
Cryptocurrencies: Bitcoin has come under pressure after Weibo, a Chinese tech giant, cracked down on accounts transferring BTC. Goldman Sachs said it doesn’t like the granddaddy of cryptocurrencies. On the other hand, El Salvador said that it welcomes Bitcoin.
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