CANADA MAY JOBS +26.7K VS FORECAST +20K, PRIOR +90.4K

MNI China Daily Summary: Friday, June 7

MNI BRIEF: China May Forex Reserves Rise On Weakened Dollar

MNI BRIEF: Mexico Inflation 4.69% In May, Below Consensus

MNI BRIEF: China Service Trade Grows Rapidly, Deficit Expands

MNI: PBOC Net Drains CNY98 Bln Via OMO Fri; Rates Unchanged

US MAY AVERAGE HOURLY EARNINGS +0.4% Vs APR +0.2%; +4.1% YOY

US MAY UNEMPLOYMENT RATE 4.0%

MNI: CANADA Q1 INDUSTRIAL CAPACITY UTILIZATION RATE 78.5%

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

EUR/USD Shows Above $1.2310. Georgia Result in Focus

EUR
MNI (London)
  • Recovery off Monday's late low of $1.2242 (having pulled back from its earlier high of $1.2309) touched a high of $1.2290 ahead of the NY open.
  • Early NY pressed rate back to $1.2254 before risk gained fresh interest and rate edged to $1.2306 before closing around $1.2300.
  • Focus in Asia was on the Georgia Senate race, the large voter turnout was seen favouring the Republicans which provided a boost to risk outlook. Demand managed to trigger stops through the recent highs at $1.2309/10 taking rate to $1.2325 before momentum faded.
  • Move reported to have met headwind profit take sales from leveraged accounts, which along with Georgia voting outlook suggesting a Democrat win saw risk bets pared which eased rate down to $1.2276.
  • Vote results proving to be a tight race (winners need to win by a margin of 0.5%) which allowed EUR/USD to nudge back to $1.2306(Tuesday high).
  • Support $1.2276, $1.2254/42, $1.2220. Resistance seen back at $1.2306/10 ahead of $1.2325, $1.2350, $1.2372.
  • Traders note that E1.1bln of EUR puts roll off at today's NY cut at $1.2300.
  • Georgia Senate result provides main focus. D win to open increased fiscal stimulus but expected tax increases. R win to restrict Biden Govt plans, anti tax rises and control on further stimulus.
  • France and Germany CPI , EZ Services PMI and EZ PPI provide morning data interest. US ADP(ahead of Friday NFP), IHS Svcs, Factory Orders the afternoon data interest.
  • MNI Techs: EURUSD maintains a bullish tone and edged higher overnight to a high of 1.2325. Recently, we have highlighted that the daily trend condition is overbought and this suggests the pair is due a correction. The continued move higher though places a correction on hold for now. The resumption of the uptrend signals scope for 1.2353, Apr 20, 2018 high ahead of 1.2380, a Fibonacci projection. Key trend support remains 1.2130, Dec 21 low.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.