What you need to know on Monday, March 8:
The American dollar extended its gains heading into the weekly close, following upbeat employment-related data and soaring government bond yields. The US created 379K new jobs in February, more than doubling the market’s expectations, while the unemployment rate shrank to 6.2%. Stocks rallied on the news, but also government bond yields. The yield on the benchmark 10-year Treasury note hit 1.626%, a fresh one-year high, finishing the week at 1.577%.
The EUR was among the worst performers, falling to 1.1892 against the greenback and settling nearby. GBP/USD and AUD/USD also fell, but closed the day off weekly lows, helped by oil and equities’ advances. The USD/CAD pair edged lower and closed the week in the red, amid higher oil prices, with WTI ending the week trading above $ 66.00 a barrel.
The USD/JPY pair soared to 108.64, a fresh 2021 high, retaining its weekly gains ahead of the close.
Gold managed to recover some ground, settling at $1,700 a troy ounce.
On Saturday, the US Senate passed the $1.9 trillion stimulus package, although some changes were introduced regarding the increase of the minimum wage to $15 per hour and the number of people who will qualify for a $1,400 stimulus payment. The final vote was 50-49, with all Democrats voting in favor of the bill and all Republicans voting against it. The bill, called American Rescue Plan Act, now moved back to the House, where it will be voted on Tuesday.
US Treasury Secretary Janet Yellen welcomed the news and tweeted: “With the economy down 9.5 million jobs since February 2020, it could be 2 years before the labor market simply reaches its pre-pandemic level. These high rates of job loss threaten the wellbeing of workers & their families.” She added that once it becomes law, she’s confident that “Americans will be met by a strong economy when we make it to the other side of the pandemic.”
Chinese trade figures released over the weekend showed the Trade Balance surplus in dollar terms resulted in $103.25 billion, much better than anticipated. Exports rose 50.1% while imports were up by 14.5%. The news may support risk-on sentiment at the weekly opening.
The UK will start reopening this Monday, according to the plan outlined by Prime Minister Boris Johnson.
Risk-sentiment may remain on at the weekly opening.
Dogecoin Price Analysis: DOGE primed for a 100% upswing above this key hurdle
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
AUD/USD pressures as Fed officials hold firm on rate policy
The Australian Dollar is on the defensive against the US Dollar, as Friday’s Asian session commences. On Thursday, the antipodean clocked losses of 0.21% against its counterpart, driven by Fed officials emphasizing they’re in no rush to ease policy. The AUD/USD trades around 0.6419.
EUR/USD extends its downside below 1.0650 on hawkish Fed remarks
The EUR/USD extends its downside around 1.0640 after retreating from weekly peaks of 1.0690 on Friday during the early Asian session. The hawkish comments from Federal Reserve officials provide some support to the US Dollar.
Gold price edges higher on risk-off mood hawkish Fed signals
Gold prices advanced late in the North American session on Thursday, underpinned by heightened geopolitical risks involving Iran and Israel. Federal Reserve officials delivered hawkish messages, triggering a jump in US Treasury yields, which boosted the Greenback.
Runes likely to have massive support after BRC-20 and Ordinals frenzy
With all eyes peeled on the halving, Bitcoin is the center of attention in the market. The pioneer cryptocurrency has had three narratives this year already, starting with the spot BTC exchange-traded funds, the recent all-time high of $73,777, and now the halving.
Billowing clouds of apprehension
Thursday marked the fifth consecutive session of decline for US stocks as optimism regarding multiple interest rate cuts by the Federal Reserve waned. The downturn in sentiment can be attributed to robust economic data releases, prompting traders to adjust their expectations for multiple rate cuts this year.