Don't worry about what the markets are going to do, worry about what you are going to do in response to the markets.
The Shared Currency dropped to $1.1283 as the greenback recovered some grounds on Monday after a surprising recovery in U.S employment in May, with 2.5 million gains in non-farm payrolls. The jobless rate fell to 13.3% from 14.7% in April, offering hope that the world’s largest economy is starting to stabilize after the pandemic triggered a wave of job cuts.
The pound rose above $1.27 and was set for its biggest weekly gain against the dollar since the end of March, even though European Union and British negotiators said there had been little progress in Brexit trade talks.
The Japanese Yen traded at lowest in more than two months at 109.43 against the U.S dollar, pressured by recent gains in long-term Treasury yields as investors await the outcome of a two-day U.S. Federal Reserve meeting ending on Wednesday.
The Aussie edged lower to $0.6970 after Australia said on Monday China remained unresponsive to its plead to ease tensions between the two trading partners that escalated after Canberra called for an international inquiry into the origins of the novel coronavirus.
South Africa's rand raced to an 11-week high to 16.78 against the U.S. dollar, supported by a risk rally as an unexpected fall in the U.S. unemployment rate brought back hopes of a swift economic recovery.
The USD/MUR stayed put at 40.15(selling) on the domestic market.
13:30 - ZAR - Business Confidence
17:45 - EUR - ECB President Lagarde Speaks
- 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.