Published last week economic data for the Eurozone and the countries within it, had no effect on the dynamics of the single currency. Its growth was stopped by Ofers from the 16th figure in tandem with the US dollar, being come under pressure a whole week of which, it gradually declined, reaching the support in the district of 1.1386. The inability of the euro/dollar to consolidate above 1.1465 and 1.1400 poses a threat to the formation of the top with a subsequent decrease in the direction of 1.1000. However, having consolidated above 1.1366, pair keeps the potential to return higher than 14 th figure.
Despite the fact that the FRS at the last meeting did not give any reason for purchases of the US dollar, investors in anticipation of the publication of important data on the labor market of the USA, took profits on short positions. Against this backdrop, the dollar showed a positive trend, not only against the euro but also against the Japanese yen, but its recovery has been modest and limited by the resistance in the area of 107.50. The inaction of the Bank of Japan, contrary to the expectations of the currency market participants, helped to keep demand for the yen.
According to the data released on Friday, the employment in the US non-agricultural sector in April was 160 thousand people, which is much lower than expected value. Besides that, the analysts forecasted decline in unemployment to 4.9%, but it remained at the level 5.0%. Thus, expectations of an increase by the FRS of interest rate at the next meeting again decreased, but profit-taking on short positions in the dollar continues and the dollar/yen was able to break through the resistance at 108.00-108.33, that allows to assume recovery of the pair in the direction of the 110th figure. This week is not planned publication of important data on the US, so this week may continue range trading that IAFT traders should be considered. BlogLinks
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