Friday’s US nonfarm payrolls showed the US economy created 559,000 jobs last month, after a revised 278,000 gain in April, somewhat below the 650,000 expected. The unemployment rate improved to 5.8%.
Traders took this negatively, for some reason, and the dollar got dumped while US yields fell. Nevertheless, stocks and precious metals rocketed higher as even a slight miss in the NFP number led to delayed expectations of monetary policy tightening.
However, sentiment worsened on Monday, with equity indices and precious metals correcting their Friday's gains as this week's US CPI report will come into focus soon.
Inflation is expected to rise further, with analysts estimating a 4.7% year-on-year print later in the week, up from 4.2% in May. That is way above the Fed's 2% target, and so far, it doesn't look transitory at all.
From other news, the WTI oil rose to 70 USD for the first time since October 2018, but so far, it has failed to hold those gains.