Dollar Holds Steady Post NFP Losses, Stock Futures Soar

USD

The dollar index, which measures the greenback against a basket of major currencies, held steady near 91.10 following Friday's sharp losses. The US jobs report showed that the US economy only created 49 thousand jobs, a very shy reading relative to what the economy has lost during the pandemic. The Unemployment rate fell to 6.3%, but this was due to seasonal adjustments and a fall in the participation rate. The soft report strengthened the chances of further stimulus to support the economic recovery, driving down the US dollar. The EURUSD rebounded to $1.2054, and the GBPUSD edged higher to $1.3741, and the risk-sensitive AUDUSD rallied to $0.7681.

Equities

Major US stock index futures extended upside rally to record highs as the soft jobs creation sparked additional interest in fiscal stimulus. Biden's administration is seeking a massive stimulus plan of $1.9 trillion, and with the sluggish jobs report, no one would dare not to help the economy. On the other hand, the pullback that occurred in late January attracted investors, along with robust corporate earnings. The Dow Jones Industrial Average futures rose to 31226, the S&P500 futures rallied to 3899, and tech-heavy Nasdaq futures soared to 13684.

Metals

Metals prices inched higher post the jobs report amid growing chances of further stimulus to boost job creation. However, the bullion may not be able to sustain gains if US yields continue to rise. The price of a gold ounce rallied to $1818, the price of a silver ounce rose to $27.30, and palladium futures hovered near $2330.

Oil

Oil prices continued to race higher, supported by producers' compliance and optimism over the economic recovery. OPEC+ producers confirmed their stance in stabilizing the market. Meanwhile, the outlook on Covid19 is getting better, with hospitalization rates dropping and the US checking up a new fiscal stimulus plan to bolster economic recovery. The West Texas Intermediate crude March delivery rose to $57.54, and Brent Blend April contract ascended to $60.04, the highest since January 2020.

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