USD ends the week on a strong note

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

Happy Trading

Build your confidence risk free

More from Forex

Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.