FX

Forex Today: Upbeat US employment figures boost risk appetite

What you need to know on Monday, April 5:

Risk -on took over financial markets on Friday, as the US added 916K new jobs in March, while upwardly revised the January and February figures. Stocks markets were closed amid Good Friday, but DJIA and S&P futures surged to unexplored territory. US Treasury yields ticked higher, with the yield on the benchmark 10-year note settling on Friday at 1.71%.

Most Asian and European markets will remain closed on Monday, amid an extension of the Easter Holiday. American markets will operate normally.

The EUR/USD pair settled at 1.1760, maintaining its bearish stance. The pound managed to post a modest advance despite the dollar’s strength backed by upbeat US employment data, but its bullish potential is limited. The pair settled around 1.1830.

Over the weekend, the UK reported that more than 5 million people receiver their second dose of a vaccine, which means roughly 10% of the population is now protected.

There was no activity around gold and oil on Friday, as the due markets were closed.

Commodity-linked currencies were under mild pressure, as the bullish tone of equities partially offset the greenback’s strength. USDCAD settled at 1.2570, while AUD/USD finished the week around 0.7600. The latter is close to confirming a Head & Shoulder formation and may fall over 400 pips in the next days.

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