Global Themes

Euro was bid on Friday as US jobs reports showed a rise in jobless rate, slightly below market forecast and futures market lowered forecast for 4 rate hikes by FOMC this year. Short term resistance at 1.1850.

Some pullback in USDJPY overnight but the pair is trading above 200 day moving average, as lingering trade war fears is in the market and it may potentially get worse. US will release CPI this week and plenty of FOMC speakers ahead.

Sterling did not move this morning despite 2 key ministers resigned after May secured cabinet's backing for her plan. Overall market is showing optimism in her plans as GBP is trading back up to 1.33. Trump will visit the UK on 12-13 July.

All eyes on BoC on Wednesday as market is pricing in a 92% of a hike, and spot trading lower from 1.33 last week to 1.30 level.

Aussie got a lift on Friday as weaker than expected USD jobless rates pushed USD lower and Aussie is now near the 0.7450/60 resistance zone.

CNH spot is trading 6.55-6.66 level as market is sensitive to any developments regarding trade war.

Deliver the Daily Currency Market Analysis to my Inbox

Published five days a week, this newsletter provides day-to-day trends and activities affecting the market in easy-to-understand snapshots