Last week was quite calm. In the absence of fresh drivers, and in anticipation of important data on employment and unemployment in the US, the major currency pairs was trading mostly in the range. The euro was under pressure from the US dollar, went down by end of the week to support in the area of the psychological level of 1.1000. Many analysts agree that the exit of Great Britain from the European Union will have negative consequences for the Eurozone, which determines the attitude of the single currency.
There is no doubt, that nothing good assumes the Brekzit for Great Britain itself. This event provoked a strong drop in the British pound right after occurrences of preliminary results of the referendum, and the decline continued last week, as a result the pound together with the US dollar has tested support at 1.2796. Under the conditions of overselling of pound, the bears failed to move below this level, but the bulls failed rise above 1.3047 as well. Long-term prospects for the British remain negative.
The main event of the last week, of course, was the publication of the employment report in the US non-agricultural sector. From these data, investors are not expecting any surprises, so unexpected increase of employment up to 287 ths. jobs, has caused a strong reaction of the market players, but it was short-lived. Growth of employment and unemployment at the level of 4.9% caused a strengthening of the US dollar against many competitors, which allowed it to finish the week on a positive note. Thus the demand for it may well continue this week, although market activity may remain low, IAFT traders should be cautious.BlogLinks
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