Markets at a Glance: Delta variant, NFP, Oil & Crypto Updates

A new and exciting trading week begins this Monday with the release of the latest NFP data last Friday. US employment data added 235,000 jobs in August, a figure well below expectations leaving traders waiting for the Fed’s direction. According to Reuters, some analysts believe that the Fed may delay the tapering of measures until the end of the year. The NFP data came a week before President Joe Biden will decide who the next Fed chairman will be. Will Jerome Powell be reappointed?

NFP below expectations

Another thing economists agree on regarding the NFP employment data is that the Delta variant has taken its toll on the US economy. Today, Monday, US markets will be closed due to the US Labor Day holiday. Ten-year Treasury yields rose 4 points to reach 1.32% on Friday. However, the US is not alone in suffering the consequences of the contagious delta variant. Australia began to de-escalate measures after three weeks of lockdown. The Australian dollar fell and cast doubts on whether the Australian central bank is considering delaying the tapering of their stimulus support. Australian bond yields rose to 1.26%. On Tuesday, the Reserve Bank of Australia will publish its interest rate decision. On Thursday, the European Central Bank will release its interest rate data as well as the direction of its monetary policy. The European Central Bank’s decision could affect the price of the euro. At the time of writing, the euro was trading at $1.18626.

Cryptos rise, oil falls

In the cryptocurrency arena, Bitcoin closed the weekend up 0.49% at $50,188.4. Meanwhile, Ether also saw a rise reaching $3,932, $44.97 above its previous close. On Tuesday, El Salvador will implement a law that will make Bitcoin legal tender. This week, on Thursday, the EIA is scheduled to release Crude Oil Stocks Change data. Meanwhile, on Friday, oil extended its losses following Saudi Arabia’s cut to Asian buyers. WTI fell 1% to $68.57 per barrel.

Economic events for the week:

Monday:

• Markit Construction PMI France, Germany, Italy, England, and Europe
• Economic and Financial Affairs Council Meeting
• Germany Factory Orders Y/Y and Q/Q

Tuesday:

• Reserve Bank of Australia (RBA) Interest Rate Decision
• European Union Employment Change q/q
• European Union Gross Domestic Product (GDP) q/qq
• ZEW Germany Economic Sentiment Indicator
• South Africa Gross Domestic Product (GDP) q/qq

Wednesday:

• Japan Gross Domestic Product (GDP) q/qq
• Ivey Canada Purchasing Managers Index (PMI)
• Bank of Canada (BoC) Interest Rate Decision
• United States JOLTS Job Openings

Thursday:

• European Central Bank (ECB) Deposit Facility Rate Decision
• European Central Bank (ECB) Interest Rate Decision
• European Central Bank (ECB) Marginal Lending Facility Rate Decision
• European Central Bank (ECB) Monetary Policy Press Conference
• The EIA United States Crude Oil Stocks Change
• Bank of Canada (BoC) Governor Macklem Speech

Friday:

• New Zealand Electronic Card Retail Sales m/m
• United Kingdom Manufacturing Production m/m
• United Kingdom Gross Domestic Product (GDP) m/m
• United Kingdom Gross Domestic Product (GDP) 3m/3m
• Canada Employment Change