Friendship is like money, easier made than kept.
The Single currency held above $1.1200, off multi-month highs of $1.1257 on Wednesday, ahead of today’s European Central Bank monetary policy decision. The ECB is expected to increase the size of its 750 bn Euro Pandemic Emergency Purchase Programme.
The Pound slipped to $1.2540 in the wake of doubts of a likely extension to the Brexit transition where the UK has until July 1 to ask for an extension to the current transition period, which ends in December.
The Yen extended decline to 109.00 against the greenback as market mood turned cautious in Asia and re-ignited the haven demand for the U.S dollar. U.S. private payrolls fell less than expected in May, suggesting layoffs were abating as businesses reopen.
The Aussie pulled back from a 5-month top of $0.6984 to $0.6880, failing to cheer the additional stimulus of $688 million Home Builder program by the Australian government, as the U.S china tensions and resurgent US dollar demand offset upbeat Australian trade balance and retail sales data.
The rand soared to 16.96 per dollar despite South Africa's Purchasing Managers' Index (PMI) contracted again in May, reaching a record low, as output and new sales collapsed during the nationwide coronavirus lockdown that began in March.
The USD/MUR idled at 40.15(selling), following the 30cts drop the previous day.
12:30 - GBP - Construction PMI (May)
15:45 - EUR - Deposit Facility Rate (Jun)
15:45 - EUR - ECB Marginal Lending Facility
15:45 - EUR - ECB Monetary Policy Statement
15:45 - EUR - ECB Interest Rate Decision (Jun)
16:30 - USD - Initial Jobless Claims
16:30 - EUR - ECB Press Conference
- From an Elliott Wave standpoint, USDCHF could potentially unfold into compelling impulsive Wave C of the zigzag correction of Wave (2) to a narrowing region 0.9550 (50% retracement of Wave (1)) to 0.9395 (100% projection of Wave A through B) in the near term trend, from the downside bias from April 6th high of 0.9797.
- Price could immediately start to shoot back up into Wave (3) on a longer perspective.
- Piercing above the resistance 0.9905 would endorse the structure.
- Alternatively, broader bearish invalidation of Elliott Wave Structure rest at 0.9191 of March 9th low while Relative Strength Index signals a bullish recoil higher for the pair.