The US dollar remains dominant following Friday’s better than expected Non Farm Payrolls which saw headline payrolls increase to 201k, with average hourly earnings also increasing. The unemployment rate increased unexpectedly though.
The dollar pairs remain on the back foot, with the AUD/USD set to challenge the 0.7100 level again following heavy selling on Friday. The euro also reversed significantly, with more selling this morning, pushing below 1.1550. The GBP/USD is out performing after holding its ground on Brexit hopes on Friday.
The US dollar continues to make ground up against the Canadian dollar after Canadian employment data sank below estimates on Friday.
The dollar has even managed to recover ground lost against the Swiss franc, with the USD/CHF bouncing off the 0.9650 support line.
The euro has under performed its peers, with the EUR/ CHF slipping below 1.1200 and the EUR/GBP breaking the 0.8950 support line on Friday, with further selling today.
The dollar is making gains against the Japanese yen, but other yen pairs remain on the back foot, with the EUR/JPY extending losses and the GBP/JPY reversing Friday’s strength.
Today, we have UK GDP at 09.30. At the same time we get UK manufacturing production and Goods Trade Balance.
The euro has turned as the US dollar remains the dominant show in town. There’s some clear light until the lows are breached again which makes a ONE TOUCH trade attractive.