King Dollar Awaits Non-Farm Payrolls with Optimism on Vaccines, Growth and Stimulus

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This is what you need to know to trade today Friday, February 5:

The market mood is positive amid optimism about the US economy and stimulus and vaccines. Awaiting Non-Farm Payrolls, the dollar rises along with yields, while metals fall and cryptocurrencies are mixed.

The Unemployment claims in the United Statess beat estimates by falling below 800,000, adding to a winning streak in economic indicators. Stocks have been spreading their gains, flirting with new highs, also buoyed by strong earnings from several companies and hopes that President Joe Biden will pass a big stimulus bill. It’s still unclear what the White House can approve, but a package closer to the expected $ 1.9 trillion seems more likely.

Regulators appear satisfied with the stability of financial markets after the frenzy around “reddit shares“GameStop (GME) extended its slide from Thursday’s highs, prompting Robinhood to remove trading limits on the video game firm’s shares and AMC’s.

The 10-year US Treasury yields they remain at high levels around 1.13%, supporting the dollar. The EUR / USD fell below 1.20 Thursday and has not been able to regain that level.

The GBP/USD he recovered after the Bank of England clarified that it is abandoning negative rate setting. The BoE also expressed optimism about the potential growth related to vaccinations. The UK and the US lead the Western world in immunizing their populations.

US Non-Farm Payrolls: The economic calendar points to an increase of 50,000 positions in January, but the publications towards the Non-Farm Payroll report point upwards, with some expecting 200,000. The US unemployment rate will remain unchanged at 6.7%.

Watch:

January NFP Nonfarm Payrolls Preview: Expecting the Dollar to Strengthen
US NFP Forecast: Dollar Needs Strong Number to Keep Rising

Canada it also publishes its employment figures, and there a second consecutive month of falls is expected. USD / CAD is trading above 1.28, reflecting the strength of the dollar more than the recent surge in oil prices.

Canada Jobs Report Forecast: Is CAD Ready to Rise Again? Three reasons for a positive surprise

The cryptocurrencies they are mixed with Bitcoin rising above $ 37,000, while Ethereum is stable in high ground and XRP is falling.

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