Swing Trades: EUR/USD, USD/CAD, NZD/USD

Dukascopy Bank Team Dukascopy Bank SA

EUR/USD: US Non-Farm Employment Change

The range of the US economic reports caused a short-term strengthening of the EUR/USD currency pair, which continued the session at pre-data levels. The European single currency added 25 base points or 0.22% against the US dollar, but quickly returned to the 1.1650 area, where the bearish sentiment was sustained until Monday morning.

The Labour department revealed that the US job growth sped up in October, while the yearly wage growth as well as participation rate fell in the reported period, clouding the outlook of the job market. The report showed that the country’s economy added 261K jobs in the reported period, missing forecasts for a 310K increase. The weak pay growth is likely to hamper inflation to reach 2% target.

USD/CAD: Canadian Employment Change

The Canadian Dollar rose significantly against the US Dollar as the both North American countries released set of reports on Friday. The USD/CAD currency pair tumbled 98 base points or 0.77% to the 1.273, but tried to recover gradually.

Statistics Canada stated that the economy added 35.3K positions in October, mainly due to higher full-time employment, while the jobless rate rose to 6.3% as more people were seeking a job. The results will be closely watched by the Bank of Canada to decide whether to raise key interest rates again. Meanwhile, there was some strengthening in the wage growth, which could contribute to the Bank’s decision to proceed with monetary tightening.

NZD/USD: NZ Inflation Expectations

The Kiwi weakened against the US Dollar after the Reserve Bank of New Zealand diminished its inflation expectations. The NZD/USD currency pair dropped 0.20% or 14 base points to the 0.6894 mark to continue gradual decrease.

The RBNZ quarterly survey showed that inflation growth is likely to remain tepid, adding to expectations for the Central Bank to keep the key interest rate at the record-low level of 1.75%. The Reserve Bank revealed that the country's businesses expect yearly inflation to grow average 1.9% over the next year, compared with a 1.8% growth projection previously. Meanwhile, the Bank’s two-year inflation forecasts fell to 2.0% from 2.1%.

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Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

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Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD softens to near 1.3600 as BoE hints further rate cuts

The GBP/USD pair loses ground to near 1.3610 during the early Asian session on Monday. The Pound Sterling softens against the Greenback amid growing expectations of the Bank of England’s interest-rate cut. Traders will take more cues from the Fedspeak later on Monday.

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Bitcoin price recovers slightly, trading at $65,000 at the time of writing on Friday, after reaching a low of $60,000 during the early Asian trading session. The Crypto King remained under pressure so far this week, posting three consecutive weeks of losses exceeding 30%.

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XRP rally extends as modest ETF inflows support recovery

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