On Friday, July 9, here’s everything you need to know:
As yields reverse course and climb, the dollar has resumed its advances. Some markets are concerned about the Delta covid version. Oil, gold, and Bitcoin are all trading near their all-time highs. The jobs report from Canada, as well as remarks by Lagarde of the European Central Bank and Bailey of the Bank of England, will be watched.
After several days of rapid drops that puzzled markets, US bond rates have reversed course and are now above 1.33 percent. The increase boosts the dollar’s value across the board, especially against the euro, which saw gains against the dollar on Thursday.
After gaining gains following the European Central Bank’s announcement of a strategic review, the EUR/USD is now trading below 1.1850. Instead of a ceiling, the Frankfurt-based institution now aims for a symmetric 2 percent target. Investors had priced in the dovish shift and appeared to be buying the euro as a result of the lack of other significant swings.
The ECB is still focusing on headline inflation rather than core inflation. On Friday, President Christine Lagarde will address once more.
See the ECB’s Analysis on Strategy Change: Lagarde lags behind dovish counterparts. EUR/USD has room to climb, according to the Fed.
COVID-19 cases continue to rise, reaching 32,000 in Thursday’s report, pushing the GBP/USD below 1.38. The rapid spread of the Delta variety threatens to disrupt the United Kingdom’s July 19 report deadline. The EU and the United Kingdom are at odds over a new Brexit issue: the UK’s divorce cost. There is still a EUR6 billion difference to be resolved.
Sterling is also being weighed down by disappointing GDP results for May, which showed an increase of only 0.8 percent, less than half of what had been expected. Andrew Bailey, the Governor of the Bank of England, is set to speak later in the day and could provide insight into the BOE’s plans.
The spread of the coronavirus has been weighing on Asian markets, as Delta has wreaked havoc on countries like Indonesia and Malaysia. The Olympic Games will be staged without spectators, according to Japan.
Inflation in China dropped to 1.1 percent YoY in June, which was lower than predicted. Last month, producer prices increased by 8.8%, a high but not quite record high. The data help to paint a picture of a cooling off period.
Stock markets in the United States fell on Thursday, owing to anxieties in bond markets and concerns about the spread of Delta in the United States. Despite the fact that vaccination doses are plentiful, many people in the world’s greatest economy have yet to receive the vaccine.
See Delta Doom is coming to America, and the dollar may become the alpha dog.
After two months of severe drops, Canada’s jobs report for June is likely to show a significant rise of over 170,000 jobs. The USD/CAD exchange rate is hovering around 1.25, bouncing about in reaction to fluctuating gasoline prices. WTI Crude Oil is trading around $73, down from recent lows triggered by speculation that the UAE might increase output.
Job Opportunities in Canada: A Sneak Peek Is the USD/CAD set to decline as a result of the summer hiring boom?
Bitcoin is currently hanging around $33,000, continuing its downward trend. Ethereum is currently trading at $2,100./n
