Dollar clings to gains ahead of all-important Nonfarm Payrolls, oil rises, cryptos fall

The dollar is holding onto gains as tensions mount ahead of June’s Nonfarm Payrolls figures. The OPEC+ disagreement pushes oil prices higher while cryptocurrencies are losing ground. Concerns about the Delta variant persist.

Markets are relatively stable in typical pre-Nonfarm Payrolls trade. The dollar is holding onto most of its gains across the board, while benchmark 10-year Treasury yields hover above 1.46%.

NFP: Investors expect an increase of 690,000 jobs in June, above May’s 559,000. While ADP’s labor figures beat estimates, the employment component of the ISM Manufacturing Purchasing Managers’ Index dipped below 50, reflecting contraction.

However, further reopening last month implies more hiring in the leisure and hospitality sectors. An increase in the participation rate is also eyed, while wage growth may have decelerated.

Tapering: Federal Reserve member Patrick Harker is the latest official calling for a tapering of the bank’s bond-buying scheme. He joins other members expressing hawkish opinions such as Robert Kaplan and Christopher Waller.

WTI Crude Oil is hovering around $75, the highest level since 2018 after the OPEC+ meeting failed to reach a consensus on Thursday. Members led by Saudi Arabia and Russia reconvene on Friday and will likely increase output by some 400-500 thousand barrels per day.

The Delta variant of coronavirus continues spreading, potentially pushing cases up in Europe after a long decline in infections. Doubts about the ability of British tourists to travel to the continent persists. EUR/USD is trading below 1.1850, and GBP/USD at around 1.3750, both near the lowest levels since April.

Cryptocurrencies have been resuming their falls, with Bitcoin changing hands under $33,000 and Etehreum struggling around $2,000. Regulators in Singapore are examining Binance’s operations in the city-state, adding to pressure.

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