US dollar bounces back after better than expected jobs data

OctaFx Analyst Team OctaFX

The price of crude oil rallied today after Russia and Saudi Arabia reached a deal with Iraq on supply cuts. The deal will see Iraq start complying on the agreed quota and compensate for the cheating it did in May. Other countries that have not been complying are Nigeria, Angola, and Kazakhstan. The agreement by Iraq means that the meeting that was scheduled for the coming week will take place tomorrow. According to Bloomberg, Russia and Saudi have reached an agreement to continue with the cuts because they seem to be working.

European stocks rose today as the market reacted to the ECB interest rate decision made yesterday. The DAX, FTSE 100, and CAC 40 rose by 1.35%, 0.90%, and 1.78% respectively. As a result, the indices have had their best week this year. In its statement yesterday, the ECB said that it was boosting its quantitative easing program by more than €600 billion. Also, investors have been reacting to the multibillion-euro stimulus package announced by individual countries and the European Commission. Optimism is also rising over recent data that showed that the region was recovering. For example, while the manufacturing and services PMI numbers were in contraction, they were better – by far – than those released in May.

The US dollar rose after the ONS released better than the expected jobs numbers. The data showed that the US economy created more than 2.5 million jobs in May after losing more than 20 million in the previous month. The unemployment rate eased from the previous 14.7% to 13.3%. The U6 unemployment rate, which is usually a better indicator of unemployment declined to 21.2%. At the same time, average hourly earnings declined by 1% while the average hourly worked rose to 34.7. Meanwhile, in Canada, the unemployment rate rose to 13.7% as the country created more than 289k jobs.

GER30

The DAX index rose to an intraday high of €12,691, which was a few points below the highest level since March. On the four-hour chart, the price is above the 61.8% Fibonacci retracement level. It is also above the 50-day and 100-day exponential moving averages while the RSI has moved to the overbought level of 74. Therefore, the index may continue to rise as bulls attempt to reach the important resistance level of €12,900.

XBR/USD

The XBR/USD pair rose today after Saudi and Russia reached a deal with Iraq. The pair is trading at 41.20, which is the highest it has been since March 6 this year. As a result, the price is above the 50-day and 100-day EMA on the four-hour chart. The RSI has also moved above the overbought level while the price is above the Ichimoku cloud. While the pair may continue to rally on Monday, there is a possibility of more volatility in the aftermath of the OPEC meeting.

EUR/USD

The EUR/USD pair declined slightly after the US released better-than-expected jobs data. The pair is trading at 1.13336, which is slightly below the day’s high of 1.1386. On the four-hour chart, the price is above the 50-day and 100-day exponential moving average while the RSI is above the overbought level. The pair may oscillate around this level as the market digests the jobs data ahead of the FOMC decision next week.

Author

OctaFx Analyst Team

OctaFX

OctaFX is a market-leading forex broker, providing personalised forex brokerage services to customers in over 100 countries worldwide.

EUR/USD off highs, back to around 1.1900

EUR/USD keeps its strong bid bias in place despite recedeing to the 1.1900 zone following earlier peaks north of 1.1900 the figure on Monday. The US Dollar remains under pressure, as traders stay on the sidelines ahead of Wednesday’s key January jobs report, leaving the pair room to extend its upward trend for now.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

Crypto Today: Bitcoin steadies around $70,000, Ethereum and XRP remain under pressure

Bitcoin hovers around $70,000, up near 15% from last week's low of $60,000 despite low retail demand. Ethereum delicately holds $2,000 support as weak technicals weigh amid declining futures Open Interest. XRP seeks support above $1.40 after facing rejection at $1.54 during the previous week's sharp rebound.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.