Here is what you need to know on Monday, June 7:
The market mood is mixed after US Nonfarm Payrolls missed estimated and America's top financial official embraced rising inflation. Bitcoin remains volatile while oil is off the highs. Virus headlines and responses to the G-7 tax deal are eyed.
Higher rates would be a plus: US Treasury Secretary Janet Yellen said that an increase in inflation and interest rates would signal a positive development. The former Chair of the Federal Reserve commented that consumer prices could advance at an annual rate of 3%.
Yellen and fellow G-7 finance ministers agreed on a minimum 15% global corporate tax rate, a move that potentially raise revenues from globe-trotting tech companies.
Treasury yields have marginally risen, with returns on 10-year bonds touching 1.57%, but still below the levels seen before Friday's Nonfarm Payrolls report. The economy gained only 559,000 positions in May, below expectations. Moreover, revisions added only 12,000 to April's downbeat figure.
See NFP Quick Analysis: Dollar buying opportunity? Two reasons why dollar downing is likely temporary
The dollar dropped in response and is struggling to recover. XAU/USD bounced from the lows but remains under the $1,900 level.
Germany: Chancellor Angela Merkel's CDU party won regional elections in Saxony-Anhalt, exceeding expectations and giving a boost to the center-right party ahead of September's general poll. EUR/USD is holding onto gains above 1.2150 and the Sentix Investor Confidence is eyed.
UK businesses fear the planned June 21 reopening will not go through due to the increase in COVID-19 cases. The Delta strain first identified in India is now the dominant one and is 40% more transmissible than the Kent variant, now called Alpha. GBP/USD is hovering around 1.4150, in familiar ranges.
China reported an export surge of 27.9% YoY in May due to rising global demand and imports also advanced. However, both figures fell short of expectations.
WTI Crude Oil has dipped below $70 after topping that level, reaching the highest since 2018. Prospects of higher demand are supporting pterol prices.
Cryptocurrencies: Bitcoin has come under pressure after Weibo, a Chinese tech behemoth, clamped down on accounts transferring BTC. Goldman Sachs said that a CIO roundtable dislikes the granddaddy of cryptocurrencies. On the other hand, El Salvador said it welcomed Bitcoin.
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 retreats below 1.0850 ahead of Fedspeak
EUR/USD stays under modest bearish pressure and trades in negative territory slightly below 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.
GBP/USD stays under modest bearish pressure near 1.2650
GBP/USD edges lower toward 1.2650 after posting marginal losses on Thursday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to gain traction. Fed policymakers are scheduled to speak later in the day.
Gold holds steady above $2,380, Fed speakers in focus
Gold trades with a positive bias on Friday and holds above $2,380. The benchmark 10-year US Treasury bond yield stays flat near 4.4% following Thursday's rebound, allowing XAU/USD to keep its footing ahead of speeches from Fed officials.
XRP steadies at $0.51 as Ripple plans to expand XRP Ledger, custody services in Africa
Ripple hovers close to $0.51 on Friday, above the psychologically important $0.50 level, as traders await the court ruling of the lawsuit against the US SEC and amid new commitments from the firm to expand its services in Africa.
Disputes and De-risking: US-China trade dispute changes trade flows
The bilateral trade dispute between the US and China is entering a new round and is leading to renewed discussions about the deglobalisation of global trade in goods.