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BUZZ-COMMENT-US recap: EUR/USD weakens as payrolls bolster dollar

By U.S. afternoon trade, EUR/USD was only modestly lower on the day, remaining stuck in its June 22-23, 1.1168-348 EBS range atop the 38.2% Fibo of the May-June rise.

The dollar index recovered after hitting its lowest since last Wednesday but remained below its 38.2% Fibo of the April-June slide at 97.71, as Trump administration officials touted the jobs recovery while keeping the door open to do more to support the economy .

USD/JPY recovered from near its daily cloud base at 107.30 due to the initial jump in Treasury-JGB yield spreads, but then fell back with Treasury yields and stocks .

The recovery from the May-June double-bottom by 106 reached an A-B-C objective with Wednesday’s 108.16 high, which triggered a bearish engulfing candlestick formation during that session.

USD/JPY may need a close above the daily kijun at 107.96 or below the tenkan at 107.12 to resume the recovery from 106 or to confirm Wednesday’s bearish reversal signals .

GBP/USD eked out a new session high in the immediate risk-on response to the payrolls report but quickly retreated after failing to clear June 24’s 1.2541 swing high and on the news the EU-UK trade negotiation meeting planned for Friday had been canceled .

Net changes in high beta and emerging markets currencies were mixed and idiosyncratic.

PMI and ISM services data Friday and Monday will be the next data focus amid ongoing pandemic news surveillance.

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(Editing by Burton Frierson Randolph Donney is a Reuters market analyst. The views expressed are his own.)


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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