US Dollar demand notable ahead of NFP data

Friday 4 June 2021

Yes folks, it's that time of the month again as markets get hyped up about the US jobs and wages data at 12.30 GMT today, particularly interesting in theory given the current paranoia about inflation and any response from the Fed.

Jury on the Greenback still out so ignore the noise and, as always in these fickle times, be careful with your trading. Pick your preferred entry/exit levels and don't be greedy or over-analyze. Patience and discipline are key too of course. Let the algos do the work around the data release and take advantage of that as suits your interest.

GBPUSD: A good hold of the decent support at 1.4080 after 1.4100-10 finall broke yesterday after that option interest and some pips banked after more 1.4180-00 re-sells. EURGBP selling through 0.8580 helping to underpin this morning. I remain a rally seller but respecting the dip demand/range trading.EURGBP: 0.8580-00 has finally broken amid some general EUR supply and that in turn is underpinning Cable too.

GBPJPY: Now failing around 155.80 with GBP under a little pressure yesterday but dip demand at 155.30 while risk sentiment remains ok and USDJPY demand.

I remain a GBP rally seller across the pairs but still not getting over greedy with expectation on the retreats.

EURUSD: A good hold at 1.2100 so far but rallies weak amid the USD demand and general EUR supply at the moment and some pips banked. Rallies capped at 1.2120 so far but let's see what NFPs bring. USDJPY: Rallies capped at 110.33 amid the the USD demand. Today's NFP data will tell us more of where we go next.EURJPY: 133.65-75 now broken and targeting next decent line of defence at 133.30. Sellers lurking around 133.60 now as first obstacle to any rally.USDCHF: Holding 0.8980 in its latest retreat as EURUSD caps again but rallies still tempered by EURCHF capping but with the SNB ever vigilant/helpful.Sellers now poised at 0.9010-20. EURCHF: Capped into 1.0980 again but holding 1.0950 still and SNB shadow keeping it underpinned.

AUDUSD: Notable that yesterday's accelerated retreat from 0.7750 happened post-options expiry time albeit with the additional USD demand and now 0.7680 becomes a pivotal area for any recovery. USDCAD: Finally back above 1.2100 amid the firmer USD tones and now providing a good line of support.

Let's continue to be careful out there in all things. Staying safe must be our main priority still. Have a good weekend everyone.

Interbank rates: 08.55 BST

GBPUSD 1.4118

EURUSD 1.2113

EURGBP 0.8577

GBPEUR 1.1657

GBPAUD 1.8426

GBPCAD 1.7122

GBPJPY 155.59

USDJPY 110.18

EURJPY 133.47

EURCHF 1.0964

AUDUSD 0.7723

USDCAD 1.2124

USDCHF 0.9050