Here is what you need to know on Monday, August 10:
The US dollar is holding onto Friday's gains, triggered by upbeat Non-Farm Payrolls and escalating Sino-American tensions. The focus is on fiscal stimulus talks, which remain stuck despite presidential intervention. Gold is on the back foot and Bitcoin is trading higher.
The US economy gained 1.763 million jobs in July, with the unemployment rate falling to 10.2%. The figures beat estimates but still point to a slowdown in hiring amid a resurgence of coronavirus. The JOLTS Job Openings statistics for June are due out on Monday.
US fiscal stimulus: President Donald Trump signed four executive orders that include federal unemployment benefits worth around $400/week, deferring of payroll tax, and other measures. It is unclear if he has the authority to act and the move seemed to break the deadlock between Republicans and Democrats.
Both sides remain apart on jobless benefits and on state aid. Markets remain optimistic that a deal will be reached. However, support will likely be less ambitious that earlier thought. Safe-haven flows could boost the dollar if the probability for a large package diminishes.
Sino-American tensions remain elevated after Washington announced sanctions against Hong Kong leader Carrie Lam. Authorities in the city-state arrested Jimmy Lai, a prominent pro-democracy media mogul. US Health Secretary Alex Azar visited Taiwan, angering Beijing.
US and Chinese trade negotiators will meet to take stock of the trade deal – what genuinely interests markets. So far, the world's largest economies have been sticking to the Phase One accord signed in January.
Gold was knocked off the all-time high of $2,075 on Friday and consolidates around $2,030. Silver is consolidating around $28 after nearing $30 last week.
Oil prices are edging higher after Saudi Aramco said it expects a stronger recovery in demand. WTI is changing hands around $42.
Bitcoin is trading around $12,000 after a swift move higher. Ethereum is somewhat more stable at around $400 while XRP is holding up near $0.30.
EUR/USD is trading around 1.18, off last week's highs. The increase in the old continent's coronavirus cases seems to remain under control. The SEntix Investor Confidence is eyed.
GBP/USD is trading below 1.31 ahead of this week's UK jobs and growth figures. A survey suggests that up to a third of British employers are set to cut jobs by October.
AUD/USD is holding up above 0.7150, as COVID-19 cases in Melbourne are showing signs of stabilization.
US coronavirus cases have topped five million and deaths are over 162,000. Nevertheless, the infections' curve is bending lower while mortalities have stabilized.
See 2020 US Election: August is for calculating, September for campaigning
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
AUD/USD hovers around 0.6500 amid light trading, ahead of US GDP
AUD/USD is trading close to 0.6500 in Asian trading on Thursday, lacking a clear directional impetus amid an Anzac Day holiday in Australia. Meanwhile, traders stay cautious due ti risk-aversion and ahead of the key US Q1 GDP release.
USD/JPY finds its highest bids since 1990, near 155.50
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, testing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming Japanese intervention risks. Focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold price treads water near $2,320, awaits US GDP data
Gold price recovers losses but keeps its range near $2,320 early Thursday. Renewed weakness in the US Dollar and the US Treasury yields allow Gold buyers to breathe a sigh of relief. Gold price stays vulnerable amid Middle East de-escalation, awaiting US Q1 GDP data.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Meta Platforms Earnings: META sinks 10% on lower Q2 revenue guidance Premium
This must be "opposites" week. While Doppelganger Tesla rode horrible misses on Tuesday to a double-digit rally, Meta Platforms produced impressive beats above Wall Street consensus after the close on Wednesday, only to watch the share price collapse by nearly 10%.