The US Dollar plunged to the lowest level in nearly a month after US nonfarm payrolls indicated the slowest job growth in more than 5 years. This has weighted on market expectations that Fed will raise the interest rate this summer. In particular, the number of jobs created during May was 38,000, far below the market forecast of 164,000.
The data on the country’s manufacturing sector also disappointed investors with a drop to 52.9 from April’s 55.7. According to the CME Group, the market sees only a 6% chance of a Fed rate hike in June now, while this figure was 21% last Thursday. The dollar index, measuring the strength of the greenback against a basket of major currencies, still hovers around Friday’s low of 93.855, the lowest level since May 12.
Brent crude prices reached $50 per barrel on Monday, up 0.8% from their last settlement, as the attacks on oil infrastructure in Nigeria tighten supplies further. U.S. West Texas Intermediate (WTI) crude futures were last trading at $49.11 per barrel, adding 49 cents.
The British Pound lost more than 1% in the early Asian session today, after many polls published during the weekend reported a lead for the “Leave” group compared to the “Remain” group.
Gold approached the highest level in two weeks on Monday thanks to the support from the weakening dollar, and the sell-off on global markets.
Fig. USDJPY H4 Technical Chart
USDJPY has been in a bearish market as seen in the red parabolics sar band moving above the price chart. A rebound has just stepped in, as the RSI has shown signs of escaping from oversold territory. However, this uptrend may just be a small consolidation due to the fact that both short-term and long-term EMAs are putting pressure on the pair, which is expected to push the price to the support level at around 106.353.
Buy Digital Put Option from 106.968 to 106.353 valid until 20:00 June 6, 2016
Fig. EURGBP H4 Technical Chart
The Euro is on track to gain against the sterling as indicated by the appearance of the green signal trend arrow. ADX has rocketed to 41, along with DI+ (green line) crossing up above DI- (red line), suggesting a strong buying trend for the pair EURGBP. The up-move is not anticipated to be interrupted till the price hits the resistance at 0.79460, the highest level in nearly a month.
Buy Digital Call Option from 0.78894 to 0.79460 valid until 20:00 June 10, 2016
Fig. CADCHF H4 Technical Chart
After plunging strongly from a one-month high at 0.77345, the pair CADCHF has been moving sideways in a wide range. The pair is under downward pressure from the red parabolics sar and the short-term moving average above. RSI is hovering around level 37 and heading down, indicating strong selling power. The price is likely to hit the oversold territory soon.
Buy Digital Put Option from 0.75243 to 0.74564 valid until 20:00 June 10, 2016
Fig. GOLD H4 Technical Chart
Gold gained significantly after a long string of losses. The commodity has been in the overbought territory with RSI staying above level 70, indicating that a reversal is about to happen soon. The price is now tiptoeing in the area around Fibonacci 50.0%. It is expected to go down and hit the zone of Fibonacci 38.2 before surging again.
Buy Digital Call Option from 1233.71 to 1254.42 valid until 19:00 June 6, 2016
Fig. BRENT H4 Technical Chart
Brent has been moving cautiously between the range of 48.65 and 50.94 since the middle of May. The commodity has been up slightly today touching $50.09 per barrel, supported by the EMA 10 below. RSI is moving to the overbought territory, encouraging long positions. The price is expected to continue its upward trend, and retesting the recent highs.
Buy Digital Call Option from 50.09 to 50.94 valid until 19:00 June 6, 2016
Fig. FTSE H4 Technical Chart
FTSE is now trading at 6224.0, up 0.07% compared with the last settlement. The index has climbed from the support level at 6131.9 since the beginning of the month with the support of the short-term EMA below. RSI (14) is above the level 50 and heading to the overbought zone, suggesting a continuing bull market. Buying positions are encouraged.
Buy Digital Call Option from 6219.3 to 6278.9 valid until 19:00 June 6, 2016