Forex Today: Dollar regains poise amid US jobs blowout, ISM Services PMI highlights Easter Monday


Here is what you need to know on Monday, April 5:

The market mood remains cheerful, as investors bet on faster economic recovery after the US jobs data released Friday blew past expectations. Thin trading conditions, as most major economies observe Easter Monday, keep the sentiment buoyed starting out a fresh week.

A big beat on the US NFP data, President Joe Biden's infrastructure plan and hopes for a vaccine-led recovery raised expectations of a Fed rate hike sooner than previously anticipated. Therefore, the US Treasury yields held onto Friday’s upsurge, with the benchmark 10-year rates around 1.72%.

The S&P 500 futures gain half a percent after the Wall Street indices closed the last week at record highs. The US dollar index regains poise ahead of a subdued trading session while traders await the US Services PMI for fresh trading impetus. The US non-manufacturing sector activity is expected to have expanded at a faster rate in March, with an estimated figure of 58.5.

Across the fx board, resurgent demand for the US dollar has fizzled the recovery attempts in most majors. EUR/USD is back under 1.1750 amid the continued surge in covid cases and restrictions in France, Italy and Germany.

GBP/USD trades pressured towards 1.3800 despite the UK completing vaccinations for 10% of its populations. Traders await Prime Minister Boris Johnson’s confirmation on Monday on a plan, which will allow people to attend public events including sports by either showing proof of vaccination, a recent negative test or antibodies from an infection in the last six months.

Gold feels the pull of gravity amid risk-on mood, higher Treasury yields and the greenback. The precious metal could challenge Thursday’s low at $1705 if the selling pressure intensifies.

WTI Crude Oil is trading below $61 despite Saudi Arabia’s oil-price hike for Asian buyers, as investors assess the implications of the OPEC and allies’ (OPEC) decision to ease the oil output cuts.

Bitcoin is trading well below $60,000, unable to capitalize on more institutional demand. Ethereum is defending the round $2,000 level while Ripple outperforms, having briefly recaptured the $0.70 mark.

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 stays under bearish pressure, closes in on 1.0500

EUR/USD stays under bearish pressure, closes in on 1.0500

EUR/USD has extended its daily slide in the American session and declined below 1.0530. The one-year inflation expectations of the Conference Board's Consumer Confidence Survey climbed to 8% in June from 7.5% in May, providing a boost to the greenback. 

EUR/USD News

GBP/USD continues to push lower toward 1.2200

GBP/USD continues to push lower toward 1.2200

GBP/USD has turned south in the American session and slid toward 1.2200. The US Dollar Index extended its daily rally toward 104.50 after the latest US data on Tuesday, forcing the pair to stay under bearish pressure. 

GBP/USD News

Gold continues to fluctuate in tight range above $1,820

Gold continues to fluctuate in tight range above $1,820

Gold is having a difficult time making a decisive move in either direction on Tuesday and fluctuating in a narrow range above $1,820. As investors assess the latest data releases from the US, the 10-year US T-bond yield clings to modest gains above 3.2%.

Gold News

Former Ripple CTO is dumping millions of XRP, traders beware

Former Ripple CTO is dumping millions of XRP, traders beware

XRP price shows promise that it is ready to trigger a massive run-up as the first half of the year comes to an end. There are three reasons why investors should be bullish on Ripple.

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!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures