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Friday, January 6th
After a short period of consolidation, the GBP/USD pair is giving away a part of its gains on the back of US dollar’s correction against its main competitors. Yesterday pound bulls managed to take control over the pair amid broad greenback’s weakness. Moreover, prevalent risk friendly environment triggered by strong drawdown in oil stockpiles also has fueled pair’s northern traction. However, expectedly the pair will continue to keep its bearish trend as traders are locking in some profits ahead of crucial jobs report scheduled on the NA session.
The EUR/USD pair stopped its rally and entered consolidation phase in Tokyo, as cautious sentiments ahead of NFP release have gained a pace. Currently the main currency pair continues to trade in a quiet mode after recent sharp rally of 150 pips, stepping down a bit from its daily highs posted at 1.0613 spot. However, FOMC Meeting Minutes that appeared not so hawkish, as it was expected continue to influence negatively on US dollar’s dynamics. Meanwhile, traders are eagerly awaiting for US jobs report, especially taking into account yesterday’s weak ADP Nonfarm Employment Change.
The Aussie turned lower against its American counterpart after brief consolidation phase seen in Asia failing to take advantage of surprisingly strong Australian trade data. At the moment of writing the AUD/USD pair was trading at 0.7318 spot, having posted its daily highs 0.7353, as US dollar corrects higher against basket of its major peers after sharp yesterday’s downside rally. Meanwhile, investors shift their attention towards US fundamentals, with much-awaited NFP data scheduled for release later in the NA session.
The USD/CAD pair has slowed its rebound from yesterday’s lows posted at 1.3191 spot, which is the lowest level seen in the last three weeks. Seems that US bulls have gathered a pace after greenback’s sharp downside rally on the back of mixed sentiments around FOMC Meeting minutes. However, slightly better tone of oil prices based on strong draws by the API and the EIA is limiting pair’s recovery. Moreover, market participants will stay cautious ahead of eventful NA session with crucial labor market reports from both sides.
The main events of the day:
US Nonfarm Payrolls – 15.30 (GMT +2)
US Unemployment Rate – 15.30 (GMT +2)
Canadian Employment Change – 15.30 (GMT +2)
Canadian Ivey PMI – 17.00 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0432 R. 1.0702
USDJPY S. 113.78 R. 118.20
GBPUSD S. 1.2211 R. 1.2535
USDCHF S. 1.0000 R. 1.0268
AUDUSD S. 0.7239 R. 0.7407
NZDUSD S. 0.6921 R. 0.7087
USDCAD S. 1.3120 R. 1.3364
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