Forex Today: The US Payrolls takes centre stage

Pablo Piovano FXStreet

While market participants wait for the results of the UK general elections, attention is expected to gradually shift to the release of US Nonfarm Payrolls on July 5, following a dull session that witnessed marginal volatility and unusual trade conditions in response to the US Independence Day holiday.

Here is what you need to know on Friday, July 5:

The USD Index (DXY) remained stuck within its multi-session bearish trend, approaching once again the 105.00 neighbourhood. The Nonfarm Payrolls and the Unemployment Rate will be at the centre of the debate on July 5, along with the speech by the Fed’s J. Williams.

EUR/USD picked up pace and extended the recent breakout of 1.0800 the figure. On July 5, Germany’s Industrial Production is due in the first turn, seconded by Retail Sales in the broader Euroland and speeches by the ECB’s Elderson and Nagel.

GBP/USD maintained its bullish stance well in place for yet another session and traded at shouting distance from monthly peaks north of 1.2700, all ahead of the results of the UK general election. House Prices tracked by Halifax are due on July 5, ahead of the BBA Mortgage Rate and the speech by the BoE’s Benford.

USD/JPY retreated markedly amidst the Dollar’s sell-off and the inactivity in the US. money market. On July 5, the Japanese docket will include Household Spending, and the preliminary readings of the Coincident Index and the Leading Economic Index.

AUD/USD kept its upside bias well in place and revisited the area of three-month highs past the 0.6700 mark. The final Retail Sales are only due in Oz on July 5.

Prices of WTI added to Wednesday’s advance and flirted with recent monthly highs past the $84.00 mark per barrel as traders assessed the sharp drop in US crude oil stockpiles and the extra weakness in the dollar.

Prices of Gold alternated gains with losses around the $2,360 region following another negative day of the Greenback and muted US yields. Silver saw its recent rally somewhat curtailed, although it managed well to keep business above the $30.00 mark per ounce.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

GBP/USD turns negative; slips back to 1.3530

GBP/USD comes under pressure and weakens toward the 1.3530 zone on Tuesday. Cable thus leaves behind two daily upticks in a row and retreats further from Monday’s multi-week tops past 1.3570 following humble gains in the Greenback and disheartening UK jobs data.

EUR/USD back to square one near 1.1580

EUR/USD trims its earlier gains and retests the 1.1580 region in the latter part of the NA session on Tuesday. Indeed, the pair falls into the generalised consolidative theme prevailing in the FX space amid marginal gains in the US Dollar, steady uncertainty in the geopolitical landscape and diminishing bets for further Fed rate hikes.

Gold remains offered around $4,350

Gold accelerates its daily correction and revisits the $4,350 zone per troy ounce on Tuesday. The precious metal sets aside two daily advances in a row and follows the absence of direction in the US Dollar, declining US Treasury yields across the curve and continuous uncertainty in the Middle East crisis.

Crypto Today: Bitcoin, Ethereum, XRP falter amid escalating US-Iran tensions

Cryptocurrency prices are broadly correcting on Tuesday, with Bitcoin edging lower toward $64,000. Ethereum shows weakness amid ongoing narrow-range consolidation, while Ripple trades below $1.00, weighed down by falling technical indicators.

Fiscal concerns and doubts on Fed independence send US yields to long-term highs

US Treasury yields keep rising across the curve this week, with the yield for the 30-year Treasury bond reaching its highest level since 2007, during the global financial crisis, at 5.33% so far on Monday. A mix of concerns about the ballooning US fiscal deficit and growing doubts about the Federal Reserve’s Independence are increasing pressure on US Government Bonds.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.