Taper talk pushes dollar higher, oil, cryptos, AMC rise, critical US data eyed

The US dollar is edging higher on signals the Fed is nearing tapering bond buys. ADP’s NFP and the ISM Services PMI are set to rock markets. Oil extends its rise, cryptos move higher and AMC’s stock grabs attention with parabolic rises.

Taper: The Federal Reserve is winding down it corporate bond-buying scheme and another small program worth together under $20 billion, a minuscule move. The bank’s Patrick Harker said the Fed should begin “thinking of thinking of tapering” joined his colleague Robert Kaplan by calling for tightening. The Fed’s Beige Book showed anecdotal evidence of price pressures. The bank buys $120 billion worth of bonds per month.

Despite these developments, the dollar and Treasury yields are only marginally higher on Thursday. Critical hints toward Friday’s Nonfarm Payrolls are eyed. ADP’s labor market figures are forecast to show an increase of over 600,000 private-sector positions.

The ISM Services Purchasing Managers’ Index is set to advance toward 63 points. The employment component is watched as an NFP hint and the inflation component will likely have an impact as well.

EUR/USD is hovering around 1.22 ahead of final Markit’s eurozone Services PMIs and after European Central Bank President Christine Lagarde reiterated the ECB’s commitment to the accommodative policy. Europe’s immunization to COVD-19 is catching up with other the US and the UK.

GBP/\USD remains below 1.42 as concerns about rising coronavirus cases – due to the Delta variant – continue weighing on prospects of the country’s full reopening due on June 21. The final Services PMI is set to confirm robust growth.

USD/JPY is nearing 110 on dollar strength. Japan has substantially ramped up its vaccination campaign.

WTI Crude Oil is trading around $69, the highest since 2018. A significant drawdown in private oil inventories gave the latest boost to black gold. Official inventory data and updates from the protracted nuclear talks with Iran are eyed.

Gold has recaptured the $1,900 levels and seems to be waiting for additional dollar moves.

Cryptocurrencies have been extending their recovery, with Bitcoin hovering around $38,000 and Etehreum nearing $2,800. Dogecoin’s moves are also eyed.

While broader stock indexes are stable, AMC’s stock has been surging higher, leading the charge among meme stocks. Some warn that these moves beginning on Reddit may have broader market implications.

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