Forex Today: Optimism to prevail at the start of the week


What you need to know on Monday, August 9:

The greenback soared at the end of the week, ending it with gains against most major rivals, following an upbeat US Nonfarm Payroll report. The US added 943K new jobs in July, while the Unemployment rate contracted to 5.4%, both largely beating the market’s expectations. The Underemployment Rate shrank to 9.2%, while the Participation Rate increased to 61.7%. The better-than-expected employment report revived speculation the Fed will have to tighten its monetary policy sooner than anticipated.

Wall Street closed with gains, while US government bond yields edged higher, as optimism overshadowed chances of a tighter monetary policy in the US. The yield on the 10-year US Treasury note settled at 1.30%.

EUR/USD trades around 1.1760, while GBP/USD stands at around 1.3870, as the AUD/USD pair approaches its 2021 low.

Gold prices collapsed, with the bright metal losing roughly $35 to settle at $1,763.50 a troy ounce. Crude oil prices were also under selling pressure, with WTI ending the day at $67.90 a barrel.

Over the weekend, the US Senate advanced with the bipartisan infrastructure bill, although it still requires a final vote, which date remains unclear. Still, the headline should support the market’s good mood.

The Reserve Bank of Australia published the Minutes of its latest monetary policy meeting, which repeated that the board remains committed to maintaining financial support and that a rate hike would not be likely until 2024.

The focus in the Asian session will be on China, as the country will publish July inflation figures. On Saturday, the country published its July Trade Balance, which posted a surplus of $56.58 billion, slightly better than anticipated.

XRP Price Prediction: Ripple bulls run on fumes, 10% retracement on the horizon

 


Like this article? Help us with some feedback by answering this survey:

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

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: Dollar’s corrective decline soon to be over

The EUR/USD pair has recovered some ground after reaching a fresh 2021 low of 1.1523, finishing the week trading at around 1.1600. The American dollar gave up ground after the previous week´s sharp appreciation, although the shared currency was among its weakest rivals.

EUR/USD News

GBP/USD retreats below 1.3750 after US data

GBP/USD has pared some of its gains after US Retail Sales beat estimates, with the core group hitting 0.8% last month. Earlier, investors shrugged off dovish comments from two BOE members. 

GBP/USD News

Gold sellers defend $1,800, all eyes on US T-bond yields

Gold started the week in a calm fashion and spent the first two trading days fluctuating in a tight range above $1,750. With the US Treasury bond yields falling sharply, however, XAU/USD gathered bullish momentum and gained nearly 2% on Wednesday.

Gold News

Cardano increases partnerships worldwide; analysts predict ADA price will explode to $4

The development team behind Cardano is working on the next Daedalus update. Cardano ecosystem’s new partnerships are likely to boost the utility for ADA. Dogecoin millionaire reveals that he has invested in Cardano and expects big moves in the altcoin’s price. 

Read more

What is upsetting the US consumer?

For three months American consumers have told surveys they are unhappy. Not just mildly upset but suffering an attack of pessimism not seen in a decade.  Retail Sales in September wallop expectations for the second month in a row.

Read more

Forex MAJORS

Cryptocurrencies

Signatures