Forex Today: Dollar looking for a new direction after the excellent Non-Farm Payrolls, Lagarde eyed

Here is what you need to know on Monday, June 8:

The market mood is mixed on as a new week begins. Investors are looking for a new direction after Friday's rally, fueled by the Non-Farm Payrolls. The US gained 2.5 million jobs, defying estimates for a loss of positions. 

America is getting back to work according to the labor figures, with the government playing a substantial role in keeping payrolls elevated. In turn, that may loosen the need for further stimulus from the Federal Reserve, which will announce its decision this week.


  • NFP Analysis: The complete labor market surprise
  • NFP Analysis: Shocker surge in jobs may trigger a much-needed dollar bounce, regardless of stocks

The upbeat NFP is unlikely to stop lawmakers from adopting another fiscal stimulus package estimated at around $1 trillion. Large peaceful protests against racial discrimination have were seen over the weekend in the US, and have an impact on pushing Congress to act. The additional stimulus may boost stocks and weigh on the safe-haven dollar. 

Coronavirus cases and deaths extend their decline in the Western world while rising in Latin America and other developing economies. Reopening continues in European countries and in US states, such as New York. 

EUR/USD is trading just under 1.13, below the highs recorded last week. The common currency benefited from Germany's fiscal stimulus plan and the European Central Bank's addition of €600 billion to its bond-buying scheme. Christine Lagarde, President of the ECB, will speak later in the day.

GBP/USD is hovering around 1.27, shrugging off deadlocked Brexit talks, with differences exposed on Friday once again, after the recent round of talks was inconclusive once again. The pound is also shrugging off the UK's slow pace of reopening. Businesses are worried about the 14-day quarantine requirements from incoming passengers.

Gold continues trading below $1,700, consolidating its losses from last week. Speculation about the Fed may be in play. 

WTI Oil has topped $40, extending its gains as OPEC+ members agreed to extend production cuts for another month and also increase compliance, which has been an issue. The black gold is also benefiting from hopes the US opens quickly. 

USD/CAD is trading above 1.34, consolidating its losses. Apart from oil prices, the loonie jumped in response to an excellent jobs report in Canada, which showed an increase of nearly 500,000 positions, contrary to projections for a loss of the same scale and similar to the US surprise. 

AUD/USD is edging lower amid souring Sino-Australian relations, with Beijing claiming racism against Asians in the land down under. Australia previously called to investigate China on coronavirus.

NZD/USD is trading above 0.65 as New Zealand is "100% coronavirus free" and removing social distancing rules. The country intends to maintain strict border controls.

Cryptocurrencies: Bitcoin is trading around $9,700, within range, while altcoins are experiencing more action.

More Will race relations rock markets? Election campaign, coronavirus, crippled economy all in the mix

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.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD has lost its bullish momentum after having climbed above 1.0570 with the initial reaction to the US data in the American session and retreated toward the mid-1.0500s. On a weekly basis, the pair remains on track to close in positive territory. 


GBP/USD struggles to hold above 1.2300

GBP/USD struggles to hold above 1.2300

GBP/USD has edged lower following a jump above 1.2300 in the early American session on Friday. The market mood remains upbeat ahead of the weekend with Wall Street's main indexes posting strong daily gains on upbeat US data. 


Gold stays below $1,830 as US yields edge higher

Gold stays below $1,830 as US yields edge higher

Gold continues to fluctuate below $1,830 on Friday and looks to close the second straight week in negative territory. Fueled by the risk-positive market environment, the benchmark 10-year US Treasury bond yield is up more than 1% on the day, limiting XAU/USD's upside.

Gold News

Why Cardano could surprise over the weekend

Why Cardano could surprise over the weekend

ADA  set to close out the week with a gain on the workday trading week and over the weekend? Central banks signaled that the rate hike cycle is ending, meaning less stress and tight conditions for trading, opening up room for some upside potential with Cardano set to pop above $0.55 and test a significant cap.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!