EURUSD: NFP pushed dollar up
EURUSD: NFP pushed dollar up
Written by: PaxForex analytics dept - Monday, 08 July 2019 0 comments
Markets continue to respond to the positive Friday release of NonFarm Payrolls. The US economy in June added 224 thousand jobs, which is much better than expected. Even a slightly higher level of unemployment, which rose to 3.7%, which is 0.1% higher than the five-year figure of May, could not prevent the good mood of investors.
There is no significant statistics on the first day of the new trading week in the USA that would have an impact on the direction for the dollar. Markets will await Fed chairman’s testimony to Congress on Wednesday.
It is expected that the head of the American regulator will be criticized by senators both on the financial and credit policy issues of the department, and on the state of the economy as a whole.
During the trading day, traders should pay attention to any news from the Oval Office about trade negotiations with China. News of the ongoing conflict with Iran should also be monitored — any new sanctions from Washington will support the US dollar.
For the eurozone, on the contrary, a rather busy day is expected in the economic calendar.
The data on trade and industrial production in Germany in May will affect the direction of the euro. Production orders showed two consecutive monthly gains in March and April, which should support production, despite the continued decline in new orders.
Recent PMI production research continued to report declines and, according to forecasts, these figures are unlikely to be particularly impressive due to the weakening of the automotive sector.
At the moment, the EURUSD pair is trading down at 1, 1220.
In Japan, the main orders for equipment fell by 3.7% in May compared to the same period of the last year, which is less than the projected decline of 3.9%. Compared to the previous month, orders decreased by 7.8%, which turned out to be worse than the projected drop of 4.7%. In May, Japan’s current surplus fell from 1.707 trillion yen to 1.595 trillion yen, which turned out to be better than the forecast decline to 1.385 trillion yen.
At the time of writing, the Japanese yen fell by 0.06% to 108.53 yen against the US dollar.
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Forex trading recommendations:
EURUSD: Sell. Entry point – 1, 1229. Take Profit – 1, 1213. Stop Loss – 1, 1256.
USDCAD: Buy. Entry point – 1, 3071. Take Profit – 1, 3087. Stop Loss – 1, 3043.
AUDUSD: Sell. Entry point – 0, 6989. Take Profit – 0, 6974. Stop Loss – 0, 7015.
There is no significant statistics on the first day of the new trading week in the USA that would have an impact on the direction for the dollar. Markets will await Fed chairman’s testimony to Congress on Wednesday.
It is expected that the head of the American regulator will be criticized by senators both on the financial and credit policy issues of the department, and on the state of the economy as a whole.
During the trading day, traders should pay attention to any news from the Oval Office about trade negotiations with China. News of the ongoing conflict with Iran should also be monitored — any new sanctions from Washington will support the US dollar.
For the eurozone, on the contrary, a rather busy day is expected in the economic calendar.
The data on trade and industrial production in Germany in May will affect the direction of the euro. Production orders showed two consecutive monthly gains in March and April, which should support production, despite the continued decline in new orders.
Recent PMI production research continued to report declines and, according to forecasts, these figures are unlikely to be particularly impressive due to the weakening of the automotive sector.
At the moment, the EURUSD pair is trading down at 1, 1220.
In Japan, the main orders for equipment fell by 3.7% in May compared to the same period of the last year, which is less than the projected decline of 3.9%. Compared to the previous month, orders decreased by 7.8%, which turned out to be worse than the projected drop of 4.7%. In May, Japan’s current surplus fell from 1.707 trillion yen to 1.595 trillion yen, which turned out to be better than the forecast decline to 1.385 trillion yen.
At the time of writing, the Japanese yen fell by 0.06% to 108.53 yen against the US dollar.
Start Forex trading>
Forex trading recommendations:
EURUSD: Sell. Entry point – 1, 1229. Take Profit – 1, 1213. Stop Loss – 1, 1256.
USDCAD: Buy. Entry point – 1, 3071. Take Profit – 1, 3087. Stop Loss – 1, 3043.
AUDUSD: Sell. Entry point – 0, 6989. Take Profit – 0, 6974. Stop Loss – 0, 7015.