Forex Today: Risk appetite to have a limited impact on the dollar

Valeria Bednarik FXStreet

What you need to know on Monday, July 5:

The dollar retreated on Friday amid risk-appetite. However, it closed the week with gains against most of its major rivals. The monthly employment report showed that the US added 860,000 new jobs in June, but also that the unemployment rate ticked higher to 5.9%. The greenback surged right after the release, but gave up ahead of the close, as stocks soared.

Wall Street posted solid gains, with the S&P closing at record levels for a seventh consecutive day. Government bond yields, on the other hand eased with that on the 10-year US Treasury note settling at 1.43%.

High-yielding currencies recovered alongside equities, but their bullish potential is limited. The EUR/USD pair trades at 1.1860, while GBP/USD hovers around 1.3830. The AUD/USD pair recovered from a fresh 2021 low of 0.7444 and settled a handful of pips above 0.7500. The Canadian dollar was among the strongest USD rivals as crude oil prices soared.

OPEC+ talks were delayed last week after members were unable to reach an agreement. The United Arab Emirates want a greater share of output. The UAE said a production extension is conditional to revising its baseline production. Talks will resume on Monday.

Gold advanced within range, with the bright metal ending the week at $1,787 a troy ounce.

The US celebrates a holiday on Monday, which means reduced markets’ activity.

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.