The harder right will always trump the easier wrong.
The single currency seesawed around $1.1230 following the U.S. economy added more jobs than expected in June, U.S payrolls showed on Thursday, but the reaction in the currency market has been muted because another spike in coronavirus infections in the US threatens the re-opening on economic activity.
The cable back-pedaled from high of $1.2524 to $1.2480 after a meeting between the EU and British chief negotiators scheduled for Friday to wrap up this week's round of future relationship talks was cancelled.
The Japanese Yen surged to 107.65 against the greenback on reports that U.S. Senate unanimously approved legislation on Thursday to penalize banks doing business with Chinese officials who implement Beijing's new national security law for Hong Kong, raising the chances of further friction between the world's two- largest economies.
The Aussie edged higher to $0.6930 as Australian retail sales jumped a record of 16.9% in May, recovering much of April's historic 17.7% dive which came as whole sectors were shut to fight the coronavirus.
In South Africa, the rand soared to 16.90 per dollar yesterday after South Africa recorded its first current account surplus in 17 years in the first quarter of 2020, a surplus of 1.3% of gross domestic product from a deficit of 1.3%, as the trade balance more than doubled.
The dollar-rupee smashed by 35 cents to 40.15(selling) in the wake the intervention of the Bank of Mauritius to sell U.S dollars on the local market.
12:30 - GBP - Composite PMI (Jun)
12:30 - GBP - Services PMI (Jun)
From an Elliott Wave trading standpoint, USD/CHF indicates a violent recoil higher in compelling impulse Wave (3) trajectory on a test of support marked by the confluence of a former counter-trend support at Wave (2) at 0.9372 of June 11th, percolating since late March 2020. As we have continued to highlight, the trend USD/CHF remains bullish overall.
Looking at the hourly chart, the pair may propel into Wave (3) targeting 1.0084, which represents 100% Fibonacci projection of impulsive Wave (1) through corrective Wave (2). Peeking through 0.9553 of Wave (1) would further validate the upside momentum. On the flipside, a set-back of recent low at 0.9418, then 0.9372 would render the count obsolete. If the pair fails to clear the latter, it could catalyse an aggressive decline.