This is what you need to know to trade today Monday, August 9:
Market sentiment remains tepid amid commodity sales and concerns about Chinese economic growth, despite the country’s rebound in inflation. Asian stocks erased the losses of the first hours and have stabilized as both gold and oil prices attempt a rebound.
The price of oro it fell to its lowest level since March at $ 1,688 before staging a quick rebound to $ 1,750. Dust settles over Friday’s NFP explosion as the US dollar takes a breather after hitting new two-week highs near 92.90 versus its main competitors.
The strong employment report raised US Treasury yieldsas it reinforced expectations of an earlier normalization of the Fed’s monetary policy. However, investors continue to assess the optimistic expectations of the Fed amid the continued increase in COVID cases globally.
Meanwhile, markets also gained support from the optimism for the US stimulus. The US Senate is closer to passing the $ 1 trillion infrastructure bill, though it has yet to go through the House of Representatives.
G10 currencies are in recovery mode as the US dollar stalls its bullish momentum (for now). The kiwi it is the strongest, while the pound appears to be the most lagging behind.
The GBP/USD it does not benefit from the dollar’s pullback as it struggles to extend its rebound from weekly lows. UK political concerns are back on the table, with Prime Minister Boris Johnson threatening to demote Rishi Sunak earlier this week in an intense meeting in Downing Street. Looming Brexit concerns also continue to weigh on the pound.
The EUR/USD remains stable above 1.1750, undermined by rising Treasury yields, as focus shifts to Eurozone Sentix investor sentiment data. The AUD/USD falls back above 0.7350 amid upbeat Chinese CPI and PPI figures, shrugging off Covid concerns in Australia.
Crypto bulls are taking a breather after a broad rally witnessed over the weekend. The Bitcoin It is trading just below $ 44,000, while Ethereum flirts with the $ 3,000 mark.
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