Forex Today: Risk appetite to have a limited impact on the dollar
|What you need to know on Monday, July 5:
The dollar retreated on Friday amid risk-appetite. However, it closed the week with gains against most of its major rivals. The monthly employment report showed that the US added 860,000 new jobs in June, but also that the unemployment rate ticked higher to 5.9%. The greenback surged right after the release, but gave up ahead of the close, as stocks soared.
Wall Street posted solid gains, with the S&P closing at record levels for a seventh consecutive day. Government bond yields, on the other hand eased with that on the 10-year US Treasury note settling at 1.43%.
High-yielding currencies recovered alongside equities, but their bullish potential is limited. The EUR/USD pair trades at 1.1860, while GBP/USD hovers around 1.3830. The AUD/USD pair recovered from a fresh 2021 low of 0.7444 and settled a handful of pips above 0.7500. The Canadian dollar was among the strongest USD rivals as crude oil prices soared.
OPEC+ talks were delayed last week after members were unable to reach an agreement. The United Arab Emirates want a greater share of output. The UAE said a production extension is conditional to revising its baseline production. Talks will resume on Monday.
Gold advanced within range, with the bright metal ending the week at $1,787 a troy ounce.
The US celebrates a holiday on Monday, which means reduced markets’ activity.
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