On Monday, July 5, here’s everything you need to know:
After plunging in the aftermath of Friday’s jobs news, the dollar has started the week with an attempt to gain ground. The Chinese Services PMI is low, and there are concerns about the economy. Due to a US holiday, OPEC+ has yet to achieve an agreement, Bitcoin is down from weekend highs, and minimal volume is predicted later.
Nonfarm Payrolls increased by 850,000 in June, exceeding expectations, but with only a 3.6 percent pay increase and no significant revisions. 6.8 million people are still missing from America’s pre-pandemic workforce. The combination of strong growth with lower inflationary pressures is a “Goldilocks” scenario for markets.
Nonfarm Payrolls in the United States: June pleases everyone
Apart from the report’s shortcomings in the details, its release triggered a reversal of some of the greenback’s gains earlier in the week. Due to the lengthy Independence Day weekend, US traders are off on Monday, and the dollar is slightly higher than it was on Friday.
NFP Analysis: Is it Time to Buy the Dollar Drop? Healthy employment growth is needed to keep the Fed on pace with its tapering program.
Another factor driving the greenback’s recovery is safe-haven flows. The Caixin Services PMI in China fell short of expectations by 50.3 points, indicating lackluster growth in the sector.
Another cause for concern is the rapid proliferation of the Delta coronavirus subtype. Over 24,000 cases were reported every day in the United Kingdom, and the virus is spreading across Asia and Europe. Concerns about transmission and a lack of vaccine resistance are also weighing on people’s minds.
WTI Crude Oil is trading at $75 a barrel, holding onto recent highs as OPEC+ members have been unable to agree on a crude output increase. The talks are still going on.
Bitcoin is selling below $35,000 after hitting a high of $35,000 over the weekend. One of the adverse triggers appears to be a crackdown on Binance. The price of Ethereum is currently about $2,300.
See What to do in the second part of the year if you’re a trader/n
