Gold is holding near to $1,900 an ounce amid a debate around price pressures after U.S. employers increased hiring in May and raised wages as they competed for workers. But the nonfarm payrolls increase of 559,000 jobs was below the 650,000 forecast of economists.
Meanwhile, investors were also assessing comments by Treasury Secretary Janet Yellen who said Sunday that President Joe Biden should push forward with his $4 trillion spending plans even if they trigger inflation that persists into next year, adding a “slightly higher” interest rate environment would be a “plus.”
US Treasury Secretary Janet Yellen urged other rich nations on Saturday to keep up spending to support their economies even as the Covid-19 pandemic wanes, and said US inflation this year would be elevated but transitory.
Yellen told a news conference after G7 finance ministers met in London that they needed to invest in a fight against climate change and inequality, even after putting their economies “back on track” from the enormous hit of the pandemic.
Last week, US President Joe Biden’s administration put forward a $6 trillion budget plan that opponents said will fuel higher inflation – something that Yellen on Saturday said was unlikely to be permanent.
She hailed an agreement to pursue a global minimum tax of at least 15% on corporations as a return to multilateralism that would help to stabilize tax systems, while preserving national authority to set tax rates and policies.
Democrats will start the process on Wednesday of preparing an infrastructure bill for a vote in the U.S. House of Representatives, with or without Republican support, U.S. Energy Secretary Jennifer Granholm told CNN.
Using our website, we can easily check the currency performance last Friday June 4, 2021. We can see that the USD ended up at the lowest among the currencies. Meanwhile, AUD was up followed by NZD and JPY respectively as other major currencies stayed below the zero level.
#DailyBrief: Things traders need to know today:
Monday, June 7, 2021
🏦 US stocks continued their gains last week as the disappointing non-farm payrolls report pushed the long-dated US Treasury yields lower. European indices ended the week higher, with DAX closing at a record high for a fourth consecutive session. Australian benchmark hit a fresh high on Friday.
🇺🇸 The U.S. Labor Department reported an addition of 559,000 nonfarm payrolls in May, fewer than 675,000 expected, and a lower jobless rate of 5.8% (5.9% expected). Meanwhile, factory orders fell 0.6% on month in April (-0.2% expected), and durable orders dropped 1.3% (preliminary reading -1.3%).
💵 The US dollar index (USDX) continued to struggle around 90 as the FED tapering discussion looks less likely in near term after the job report. The yield on 10-year Treasury fell to 1.55%.
💶 EUR ended the week slightly lower at 1.2166. The ECB is expected to keep its bond purchasing program unchanged this Thursday and release updated economic growth for 2021 and 2022.
GBP dipped to 1.4164, marking the first weekly loss since May.
🇦🇺 AUD/USD bounced 93 pips (+1.2%) to 0.7747.
🇯🇵 USD/JPY plunged 76 pips to 109.53, giving back all gains made in the prior session.
🇳🇿 NZD lost against dollar last week (-0.52%) and became the worst-performing G10 currency.
🇨🇦 USDCAD was little changed on the week at 1.2072 despite the higher crude prices.
💰 Gold snapped a four-week rally despite the recovery to $1891.48 Friday. Silver eased 0.1% to $27.74 per ounce, palladium dipped 0.2% to $2,838.92, while platinum rose 0.6% to $1,169.36.
🛢 WTI crude (SpotCrude) jumped to $69.36 after a five-day winning streak.
🥇 Over the weekend, Bitcoin stayed at levels around $36,000. Ethereum surged more than 10% above $2,700.
TRADE SIGNAL SUMMARY:
Friday, June 4, 2021
GBP/CHF ⬇️SELL⬇️ @ 1.27500
GBP/NZD ⬇️SELL⬇️ @ 1.97430
GBP/AUD ⬇️SELL⬇️ @ 1.84150
XAU/USD ⬆️BUY⬆️ @ 1860
GBP/USD ⬆️BUY⬆️ @ 1.41000
GBP/JPY ⬇️SELL⬇️ @ 155.450
USD/JPY ⬇️SELL⬇️ @ 110.220
CHF/JPY ⬇️SELL⬇️ @ 121.900
EUR/NZD ⬇️SELL⬇️ @ 1.6935