FXTM information and reviews
FXTM
93%
IronFX information and reviews
IronFX
92%
Libertex information and reviews
Libertex
91%
FXCC information and reviews
FXCC
90%
Markets.com information and reviews
Markets.com
89%
FxPro information and reviews
FxPro
88%
EUR/USD
1.1728
BTC/USD
42 567.79
GBP/USD
1.3640
USD/JPY
109.4710
USD/CHF
0.9230
USD/CAD
1.2802
EUR/JPY
128.3820

Dollar subdued following jobs and G7


7 June 2021

The markets characterized the May US jobs report as Goldilocks –neither too hot, nor too cold. Indeed it was just right for bond and stock bulls. Treasuries rallied with a burst of short covering as the smaller than expected headline job increase pushed a Fed tapering further out the calendar. The steep drop in yields was very favorable to Wall Street, and especially the USA100. Today stock markets traded narrowly mixed amid disappointing trade data out of China and with investors keeping a close eye on comments from Treasury Secretary Yellen, who urged President Biden to press ahead with spending plans ($4 trillion/year), even if they may fuel inflation, while saying that a “slightly higher” interest rate environment would be a “plus”. China trade data showed weaker than expected export growth, but a jump in imports to the highest since 2010.

G7 – agreed to a global minimum tax of at least 15% on multinational companies but faces a rocky path to implementation. (The Biden administration could win support for its US tax increases). The deal give countries more authority to tax the profits of digital companies like Apple Inc. and Facebook Inc. that dominate global markets but pay relatively little tax in many countries where they operate.

European Open – The Sep 10-year Bund future is little changed, as are US futures, while in cash markets the US 10-year rate has lifted 2.0 bp to 1.57%. EGBs are also likely to move up from the lows seen in the wake of the US payroll number on Friday. With fiscal support being stepped up and the recovery strengthening, the pressure on central banks to take the foot off the accelerator is getting stronger and flexible QE schedules may become more of a thing especially for the ECB, which will be meeting on Thursday. The ECB is expected to move away from its commitment to “significantly” higher monthly PEPP purchases. GER30 and UK100 futures are currently down -0.2% and up 0.04% respectively, while US futures are fractionally lower.

Covid will remain on the regional radar again this week, as cases in several countries continue to rise, causing economic restrictions and factory closures. Thailand and Vietnam have been hit by fresh outbreaks, while Malaysia last week put a total lockdown in place. The restrictions will ultimately impact incoming data in the region.

Today – Today’s slate includes Japan’s Q1 GDP, current account, PPI and the MoF business outlook survey.  Supply is a focal point in the week ahead with the $120 bln in coupon auctions. Today‘s rally in Treasuries reflects little fear. Ironically, the richening may work to diminish demand. Markets will also digest the G7 agreement on tax payments of big firms today.

#source

Related

Trading the BoE and FOMC meetings
Trading the BoE and FOMC meetings

The FOMC and the BoE meeting are firmly in our sights now, and positions and exposures will need to be managed accordingly. Certainly, the FOMC meeting could...

22 Sep 2021

Stocks bounce back after Evergrande panic
Stocks bounce back after Evergrande panic

As investors increasingly liken the Evergrande crisis with the collapse of the Lehman Brothers in 2008, they remain in the dark about the Chinese government's intentions...

21 Sep 2021

Oil Was Put on Hold
Oil Was Put on Hold

The oil price is falling after rallying before. Early in another September week, Brent is trading at $74.50 and has a lot of room to correct. The strong greenback...

20 Sep 2021

Dollar starts Fed week on front foot, stocks hit by Evergrande fallout
Dollar starts Fed week on front foot, stocks hit by Evergrande fallout

Fears of global contagion from the worsening crisis in China's property sector continued to weigh heavily on sentiment at the start of trading on Monday as markets...

20 Sep 2021

Dollar jumps, gold slumps, stocks nervous
Dollar jumps, gold slumps, stocks nervous

Worries that the US consumer is rolling over were dealt a major blow yesterday after the nation’s retail sales for August overpowered some gloomy forecasts. The retail sales...

17 Sep 2021

Energy is the play: how we get to $100 crude
Energy is the play: how we get to $100 crude

Natural gas futures in Europe and the UK are flying, while our natural gas (NG) CFD (the underlying is traded on the NYMEX) pushed over $5.60 and into 7-year highs...

16 Sep 2021


Forex Forecasts

OctaFX information and reviews
OctaFX
86%
HotForex information and reviews
HotForex
85%
XM information and reviews
XM
80%
FXCM information and reviews
FXCM
79%
Vantage FX information and reviews
Vantage FX
78%
Moneta Markets information and reviews
Moneta Markets
77%

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.