Daily Market Commentary 7th June 2021

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The all-important Non Farm Payrolls number came out Friday in the US and was a big miss, once again. The US expected to add 671,000 jobs, but managed only 559,000. The bad news follows the shocking number from the previous month, of 266,000 added jobs. The weak employment number ironically boosted equity markets and weakened the US Dollar, as arguments now strengthen, to extend QE Infinity and ignore the rising threat of inflation. The EUR rallied to trade 1.2160, despite a contraction in Retail Sales, while the GBP rallied to 1.4160.

The weaker reserve allowed the commodity currencies to regain some lost ground, with the AUD approaching 0.7750, while the NZD regained 0.7200. The coming week will look at global economic data releases and may focus on inflation in the form of CPI and PPI numbers. The ECB rate decision will be a attraction later in the week and G7 Nations gather for a summit at the end of what could be a very busy week.

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