Friendship is like money, easier made than kept.
USD
EUR/USD
The Single currency held above $1.1200, off multi-month highs of $1.1257 on Wednesday, ahead of today’s European Central Bank monetary policy decision. The ECB is expected to increase the size of its 750 bn Euro Pandemic Emergency Purchase Programme.
GBP/USD
The Pound slipped to $1.2540 in the wake of doubts of a likely extension to the Brexit transition where the UK has until July 1 to ask for an extension to the current transition period, which ends in December.
USD/JPY
The Yen extended decline to 109.00 against the greenback as market mood turned cautious in Asia and re-ignited the haven demand for the U.S dollar. U.S. private payrolls fell less than expected in May, suggesting layoffs were abating as businesses reopen.
AUD/USD
The Aussie pulled back from a 5-month top of $0.6984 to $0.6880, failing to cheer the additional stimulus of $688 million Home Builder program by the Australian government, as the U.S china tensions and resurgent US dollar demand offset upbeat Australian trade balance and retail sales data.
USD/ZAR
The rand soared to 16.96 per dollar despite South Africa's Purchasing Managers' Index (PMI) contracted again in May, reaching a record low, as output and new sales collapsed during the nationwide coronavirus lockdown that began in March.
USD/MUR
The USD/MUR idled at 40.15(selling), following the 30cts drop the previous day.
12:30 - GBP - Construction PMI (May)
15:45 - EUR - Deposit Facility Rate (Jun)
15:45 - EUR - ECB Marginal Lending Facility
15:45 - EUR - ECB Monetary Policy Statement
15:45 - EUR - ECB Interest Rate Decision (Jun)
16:30 - USD - Initial Jobless Claims
16:30 - EUR - ECB Press Conference
- From an Elliott Wave standpoint, USDCHF could potentially unfold into compelling impulsive Wave C of the zigzag correction of Wave (2) to a narrowing region 0.9550 (50% retracement of Wave (1)) to 0.9395 (100% projection of Wave A through B) in the near term trend, from the downside bias from April 6th high of 0.9797.
- Price could immediately start to shoot back up into Wave (3) on a longer perspective.
- Piercing above the resistance 0.9905 would endorse the structure.
- Alternatively, broader bearish invalidation of Elliott Wave Structure rest at 0.9191 of March 9th low while Relative Strength Index signals a bullish recoil higher for the pair.
