Risk robust following non-farm payrolls
City Index June 9, 2014 2:43 PM
<p>Risk trade starts the week positively following a stronger close on Friday as the US jobs report kept the high momentum going. Weekend data releases from […]</p>
Risk trade starts the week positively following a stronger close on Friday as the US jobs report kept the high momentum going. Weekend data releases from China and Japan are adding to the positive sentiment.
Chinese trade data released on Sunday showed the surplus widened substantially to $35.9bn as exports grew 7% in May.
Japanese GDP for Q1 came in stronger at 1.6% versus the consensus forecast of 1.4%, with both data releases giving the dollar a negative tone as USD/CNH fell 120 points.
With most of Europe enjoying a public holiday today, I expect volumes to be light as the CFTC weekly position data still shows major accumulation of dollar longs, particularly against the euro.
Data highlights this week are likely to come in the form of employment reports from Australia and the UK as I expect the FX market to be driven by positioning adjustments.
Supports 1.3620-1.3570-1.3500 | Resistance 1.3690-1.3730-1.3800
Supports 102.10-101.80-101.30 | Resistance 102.80-103.10-103.50
Supports 1.6770-1.67400-1.6690 | Resistance 1.6850-1.6885-1.6920