USD ends the week on a strong note
Gary Christie August 8, 2020 7:30 AM
EUR/USD uptrend remains in tact despite USD intraday strength
On the U.S. economic data front, The U.S. labor market continued to improve in July despite a surge in coronavirus infections. Nonfarm Payrolls increased by 1.76 million in July, beating the 1.48 million estimate after a 4.79 million gain in June. The unemployment rate fell by more than expected to 10.2%. Finally, wholesale inventories declined less than anticipated at 1.4% on month in June from a decline of 2% in May.
The Euro was weaker against most of its major pairs except for the AUD and NZD. In Europe, June Industrial Production data was released for Germany at +8.9% (vs +8.2% on month expected) and for France at +12.7% (+8.4% on month expected). German June Balance of Trade was released at 15.6 billion euros, higher than 11.3 billion euro expected.
The Australian dollar was under pressure against all of its major pairs with the exception of the NZD.
Friday's market Wrap:
VIX index fell 0.44pt (-1.94%) to 22.21.
The US 10 year yield rose 2.8bps to 0.564%.
Gold dropped $32.71 (-1.59%) to 2030.84.
WTI Crude Oil declined 0.43$ (-1.03%) to 41.52.
Regarding Major FX Pairs:
EUR/USD dropped 92pips to 1.1785
GBP/USD fell 84pips to 1.3059
USD/JPY rose 41pips to 105.96
USD/CHF gained 31pips to 0.9129
AUD/USD fell 78pips to 0.7158
USD/CAD jumped 76pips to 1.3383
The dollar index rose 0.63pt to 93.416
Looking at Friday's largest FX PIP mover from a technical perspective, the EUR/USD dropped 92 pips however the uptrend remains in play. The EUR/USD is challenging the $1.1915 resistance area however price action remains supported by the 20-day moving average. As long as key support holds at the $1.1635 level (20-day moving average) we anticipate further upside and a break of $1.1945 resistance.
Source: GAIN Capital, TradingView
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.