Despite the impressive figures of the Friday report on the US labor market, at the beginning of the new trading week the Japanese yen is rising against the USD. The reason was the statements of US President Donald Trump about the new duties on goods from China. This led investors to turn to more safe assets.
As of Monday morning, the dollar against the yen fell to 110.8 yen from 111.09 yen to USD. The rate of the single European currency to the dollar dropped to a mark of 1.1187 dollars per EUR from the level of Friday’s close of 1.12 dollars per euro. The US dollar index rose by 0.06%, to 97.58 points.
At the moment, global investors are abandoning risky assets in favor of more reliable ones, which include the Japanese yen. This is due to the general growth of trade concerns after US President Donald Trump announced his intention to introduce new duties on Chinese goods. In addition, the American leader did not rule out the introduction of additional duties in the near future.
Increasing trading duties is always bad news for risky assets. This fact pushes investors into more safe “harbors”.
Despite this, we still expect a change of ‘flow’ for the USDJPY pair, just due to the impact of strong US labor statistics, which will increase its pressure as traders awaken throughout the day. Trading recommendations for this pair: Buy. Entry point - 110, 6. Take Profit - 110, 71. Stop Loss - 110, 41.
According to Friday statistics, the US economy added in April at least 263 thousand new jobs, which significantly exceeded analysts' expectations. The unemployment rate showed the most impressive result since 1969 - a decrease to 3.6%. Wages rose 0.2% on a monthly basis, which is slightly lower than analysts' forecasts.
Trading recommendations for other currency pairs:
EURUSD: Sell. Entry point – 1, 1190. Take Profit – 1, 1180. Stop Loss – 1, 1205.
USDCHF: Sell. Точка входа – 1, 0163. Take Profit – 1, 0146. Stop Loss – 1, 0192.
GBPUSD: Sell. Entry point – 1, 3129. Take Profit – 1, 3114. Stop Loss – 1, 3154.
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