Forex Today: Dollar struggles between NFP miss and Yellen's optimism, Bitcoin whipsawed, oil cools

Here is what you need to know on Monday, June 7:

The market mood is mixed after US Nonfarm Payrolls missed estimated and America's top financial official embraced rising inflation. Bitcoin remains volatile while oil is off the highs. Virus headlines and responses to G-7 tax deal are eyed.

Higher rates would be a plus: US Treasury Secretary Janet Yellen said that an increase in inflation and interest rates would signal a positive development. The former Chair of the Federal Reserve commented that consumer prices could advance at an annual rate of 3%. 

Yellen and fellow G-7 finance ministers agreed on a minimum 15% global corporate tax rate, a move that potentially raise revenues from globe-trotting tech companies. 

Treasury yields have marginally risen, with returns on 10-year bonds touching 1.57%, but still below the levels seen before Friday's Nonfarm Payrolls report. The economy gained only 559,000 positions in May, below expectations. Moreover, revisions added only 12,000 to April's downbeat figure.

See NFP Quick Analysis: Dollar buying opportunity? Two reasons why dollar downing is likely temporary

The dollar dropped in response and is struggling to recover. XAU/USD bounced from the lows but remains under the $1,900 level.

Germany: Chancellor Angela Merkel's CDU party won regional elections in Saxony-Anhalt, exceeding expectations and giving a boost to the center-right party ahead of September's general poll. EUR/USD is holding onto gains above 1.2150 and the Sentix Investor Confidence is eyed. 

UK businesses fear the planned June 21 reopening will not go through due to the increase in COVID-19 cases. The Delta strain first identified in India is now the dominant one and is 40% more transmissible than the Kent variant, now called Alpha. GBP/USD is hovering around 1.4150, in familiar ranges. 

China reported a surge of 27.9% YoY in May due to rising global demand and imports also advanced. However, both figures fell short of expectations. 

WTI Crude Oil has dipped below $70 after topping that level, reaching the highest since 2018. Prospects of higher demand are supporting the greenback. 

Cryptocurrencies: Bitcoin has come under pressure after Weibo, a Chinese tech behemoth, clamped down on accounts transferring BTC. Goldman Sachs said that a CIO roundtable dislikes the granddaddy of cryptocurrencies. On the other hand, El Salvador said it welcomed Bitcoin.