This is what you need to know to trade today monday february 7:
The dollar remains resilient against its rivals at the start of the week after Friday’s rally, which was boosted by the upbeat US jobs report for January. There will be no high-level macroeconomic data releases on Monday and major currency pairs are likely to move sideways. US equity futures are trading flat and the 10-year US Treasury yield remains quiet near 1.9% early Monday, pointing to a neutral market mood.
The US Bureau of Labor Statistics reported on Friday that Non-Farm Payrolls (NFP) increased by 467,000 in January. This figure exceeded the market expectation of 150,000 by a wide margin. Additionally, the release revealed that annual wage inflation, measured by average hourly earnings, jumped to 5.7% from 5% in December, beating analysts’ estimate of 5.2%. Supported by these numbers, the US dollar index snapped a five-day losing streak on Friday. The index is holding on to small daily gains above 95.50 on Monday.
NFP Analysis: US beats Omicron, giving wings to the Fed and the dollar
The EUR/USD It pulled back modestly from multi-week highs on Friday but ended up gaining over 300 pips on a weekly basis. The pair is trading in a tight range below 1.1450 heading into the European session.
The GBP/USD remains above 1.3500 after Friday’s drop. The Bank of England struck a cautious tone on the UK’s economic outlook following the decision to hike rates, limiting the pound’s rise.
The USD/JPY took advantage of the rise in US Treasury yields last week and rose above 115.00. The pair posts small daily gains near 115.30.
The gold it is still trading above $1,800 after closing the previous week in positive territory. Should US Treasury yields start to pull back, XAU/USD could pick up some bullish momentum.
The Bitcoin it broke above $40,000 on Friday and spent the weekend in a consolidation phase. BTC/USD continues to rise early Monday and was last seen trading at $42,700. The ethereum it closed the previous four trading days in the green and recovered $3,000 at the start of the week.
Source: Fx Street
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