This is what you need to know to trade today Monday June 6:
Safe-haven assets are struggling to find demand at the start of the week amid some risk-positive events. US stock index futures are up 0.5-0.7% in European morning trade and the dollar index remains relatively calm above 102.00. Trading conditions are likely to remain tight for the first half of the day due to the Pentecost Monday holiday in Europe. The US economic calendar will not offer data of great impact either.
Chinese authorities announced over the weekend that Beijing will allow residents to return to work from Monday and schools will resume from June 13. In addition, traffic bans in most areas of Beijing will also be lifted. On the other hand, the US Secretary of Commerce, Gina Raimondo, reaffirmed on Sunday that US President Joe Biden’s administration plans to ease tariffs on Chinese imports to fight inflation.
Meanwhile, data released by the US Bureau of Labor Statistics showed on Friday that US nonfarm payrolls increased by 390,000 in May, against the market expectation of 325,000.
On a negative note, data from China has shown that the Caixin services PMI improved modestly to 41.4 in May, compared to 36.2 in April. This data was much weaker than market expectations of 47.3, and showed that business activity in the services sector continued to contract at a strong pace.
The EUR/USD closed the previous week largely unchanged and continues to move sideways above 1.0700 at the start of the European session on Monday.
The GBP/USD trades in a tight range near 1.2500, after closing the previous week in negative territory. Several media outlets reported that a decision is expected to be announced on Monday. Confidence vote on Prime Minister Boris Johnson.
The USD/JPY it rose over 300 pips last week and remains relatively calm above 130.50 on Monday. The governor of the Bank of Japan, Haruhiko Kuroda, reiterated on Monday that Japan is not at all in a situation that justifies tightening its monetary policy.
On Friday, the Prayed it lost much of its weekly gains after the May US jobs report triggered a rise in Treasury yields. The yield on the 10-year US Treasury bond, which rose more than 7% last week, remains quiet near 2.95% in early Monday and the XAU/USD fluctuates around $1,850.
The Bitcoin has gained traction on Monday and has risen above $31,000 after spending the weekend in a tight channel below $30,000. The ethereum It is up nearly 4% in European morning trading but is still trading below the key $2,000 level.
Source: Fx Street
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