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Friday, June 2nd
The EUR/USD pair extends its yesterday’s mildly bullish trend into the European session, as the greenback remains broadly subdued this Friday. Seems that US bulls took a breather after upbeat ADP employment data, while awaiting all-important US labor market report. In fact, positive ADP report, released yesterday, left doors opened for another positive surprise from today’s data, which in its turn could fuel broad market’s expectations of Fed monetary policy tightening at its next meeting in June. Looking ahead, nothing noteworthy is scheduled in the European docket, so traders will remain in anticipation for crucial data from the US labor market, which will be able to set up pair’s further directional move.
The GBP/USD pair was consolidating its yesterday’s gains throughout the Asian session, led by positive UK manufacturing data, however remaining near the lower bound of its trading range. Seems that the pair has mostly ignored yesterday’s impressive ADP report, which hinted on better results of crucial NFP data due for release later today. Expectedly the pair will continue trading without clear direction during European hours, as the market is still digesting latest UK opinion polls, which showed narrowing lead of Conservatives versus the Labor party, thereby increasing nervousness among investors, as there is less than a week left before the UK general elections. Besides crucial data from the US labor market, today UK will release Construction PMI data, which will also be closely watched for any directional impetus on the pair.
The dollar/yen pair is trading within a narrow range of 15-pips near 111.60 region, consolidating its overnight’s strong gains. The pair staged a solid comeback from its two-week lows, marked at 110,48 this Wednesday, additionally supported by strong ADP report, which increased odds that today's key NFP data will also exceed markets expectations. Meanwhile, the decent NFP data can strengthen odds of a Fed rate hike in June that can additionally boost the US dollar against its main competitors. Today investor’s attention will remain glued to US monthly employment details, which will be able to set up pair’s next short-term directional move.
Seems that the BTC/USD pair recovered its bullish mode and now confidently moves upward after huge correction, seen last week. The virtual currency refreshed its historical high at the level of 2736.58 on May 25 before dipping to 1710.10 spot, as traders decided to lock in some profit. By the moment of writing, the bitcoin was trading at 2328.30 handle, having recovered most part of its losses. Renewed upside of the cryptocurrency can be partly attributed to recent headlines that major Chinese Bitcoin exchanges have resumed withdrawals of the cryptocurrency after nearly a four-month ban form that followed by increased scrutiny from the central bank. Moreover, Bloomberg published finance report, which shows that Ethereum could take top place among other virtual currencies, outperforming Bitcoin, by the end of 2018. Recently the market capitalization of Bitcoin has stepped over the mark of $40 billion, while Ethereum is currently taking the second place with $20 billion of the market cap.
The main events of the day:
UK Construction PMI – 12.00 (GMT +3)
Nonfarm Payrolls – 15.30 (GMT +3)
US Unemployment Rate – 15.30 (GMT +3)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.1168 R. 1.1278
USDJPY S. 110.29 R. 112.01
GBPUSD S. 1.2788 R. 1.2960
USDCHF S. 0.9643 R. 0.9755
AUDUSD S. 0.7318 R. 0.7482
NZDUSD S. 0.7039 R. 0.7099
USDCAD S. 1.3449 R. 1.3561
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