Here is what you need to know on Friday, July 3:
Markets have stabilized as investors digest the better-than-expected Non-Farm Payrolls figures, an upbeat Chinese survey and Americans enjoy a long weekend. Concerns about the surge in US coronavirus cases are keeping the safe-haven dollar and gold bid.
US Non-Farm Payrolls figures showed a leap of 4.8 million jobs, far above three million projected and the Unemployment Rate dropped to 11.1%. On the other hand, an increase in permanent layoffs and the timing of NFP surveys – from June 12, before the recent surge.
See NFP Analysis: Good, but as good as it gets, re-closing is rapidly ravage reopening gains
US coronavirus cases have hit yet another daily high above 50,000, with Florida topping 10,000 infections per day amid an increasing positive test rate. Dr. Anthony Fauci, the top US epidemiologist, said that the US reopened too soon before the virus came under control and that it could mutate.
Texas has mandated face masks under certain conditions and other states also imposed restrictions. High-frequency indicators such as gasoline consumption, restaurant reservations, and foot traffic data are pointing to a significant slowdown. Weekly jobless claims for the week ending June 26 remained stubbornly high.
Investors are somewhat cheered by the Chinese Caixin Non-Manufacturing Index, which surged to 58.4 points.
Brexit talks between top negotiations have been postponed to next week amid disagreements and a "lack of divergence." On the other hand, both the EU and the UK expressed hope of reaching a "landing zone." GBP/USD is trading below 1.25 ahead of final Services Purchasing Managers' Index figures.
EUR/USD is back to its morning range of 1.12-1.1250 as European leaders have yet to agree on the EU Fund. Dutch Prime Minister Mark Rutte said a compromise can be achieved. Final services PMIs will likely show a cautious recovery.
AUD/USD is advancing after Australia's final retail sales figures for May came out at 16.9%, better than the original score.
WTI Oil is changing hands above $40, extending its upward move.
Cryptocurrencies suffered a knee-jerk sell-off late on Thursday before digital currencies found their feet. Bitcoin is hovering above $9,000 once again.
US markets will be closed for the Independence Day weekend, keeping volumes and liquidity thin later in the day.
More Non-Farm Payrolls: Immense uncertainty remains prevalent, markets may react
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.