Forex Today: Dollar pressured after weak NFP, Ethereum surges, Doge and EUR/USD whipsawed

Yohay Elam FXStreet

Here is what you need to know on Monday, May 10:

The US dollar kicks off the new week on the back in the wake of Friday's weak jobs report. The pound benefits from the results of elections in the UK, EUR/USD shakes on ECB taper speculation and commodity currencies rise. Ethereum has hit new highs while Doegocoin remains pressured after Elon Musk's latest musings.

Nonfarm Payrolls rose by only 266,000 in April, far worse than around one million jobs expected. Stocks have responded positively to lower chances of any tightening from the Federal Reserve and the US dollar plunged. The Fed's Neel Kashkari said the economy remains in "a deep hole." His colleague Charles Evans speaks later in the day.

April Nonfarm Payrolls fall far short of forecast but markets hardly notice

NFP Analysis: Terrible figures show overheating theory remains relevant only for stocks

Gold has been extending its gains after breaking above $1,800 beforehand and changes hands near $1,840. The precious metal benefits from the lowe US yields, with returns on benchmark 10-year Treasuries hovering under 1.60%.

GBP/USD has surged above 1.40, benefiting from dollar weakness and from favorable election results in the UK. The Scottish National Party won the elections but fell one seat short of an absolute majority. The ruling Conservatives won a closely fought by-election in Hartlepool. Prime Minister Boris Johnson is set to announce the next steps in easing the lockdown.

A ransomware attack on US pipelines has been paralyzing gas deliveries to large parts of the US Northeast and pushing prices higher. The White House created a task force to help resume activity. WTI Crude Oil is moving up, trading above $65.

EUR/USD is trading above 1.2150, benefiting from the greenback's decline and whipsawed by comments from various members of the European Central Bank. Olli Rehn wants to adopt a loose framework similar to the Fed's, while others suggest the bank could reduce its bond buys.

Cryptocurrencies: Elon Musk sent Dogecoin tumbling after saying on Saturday Night Live that the digital asset is "a hustle." However, he also named a rocket that is set to go to the moon as "Doge 1." Ethereum stands out with a surge to all-time highs above $4,000. Bitcoin is hovering around $59,000.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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