EUR/USD and GBP/USD stall while USD/JPY slips at start of week
Outlook on EUR/USD, GBP/USD and USD/JPY following Friday’s weaker-than-expected Non-Farm Payrolls report and this week’s US CPI release.
EUR/USD eyes June high
EUR/USD’s recovery off its recent $1.0845 to $1.0835 support zone on the back of weaker-than-expected Non-Farm Payrolls last Friday has the June peak at $1.1012 in its sights.
First, though, Friday’s high at $1.0973 needs to be overcome, possible ahead of Wednesday’s US consumer price index (CPI) release.
Slips should find support around the early-July high at $1.0934.
GBP/USD thwarted by June peak
Weaker-than-forecast US Non-Farm Payrolls last Friday and surging UK yields, with two-year gilts trading in 16-year highs, propelled GBP/USD back to its June peak at $1.2848 without being able to overcome this high, though.
A minor slide back from Friday’s $1.2849 peak is taking place on Monday morning with the late-June high at $1.2759 representing a possible downside target.
While last Thursday’s low at $1.2674 underpins, though, an upside bias remains in play. Minor support above this level can be seen around the 23 June low at $1.2687. A rise above the $1.2848 to $1.2849 resistance zone would have the minor psychological $1.30 region in its sights.
USD/JPY slips further on inflationary pressures
Last week’s Japanese wage growth for May which came in at a much higher-than-expected 2.5% Year-on-Year (YoY) versus an expected 1.2% led to a sell-off in the USD/JPY cross. This was exacerbated by disappointing US Non-Farm Payrolls which provoked US dollar weakness, pushing the cross down to a three-week low at ¥143.14.
Failure there this week would push the 20 June low at ¥141.22 ahead of the ¥140.93 May peak to the fore.
Minor resistance can be spotted at Monday’s ¥143.00 intraday high, ahead of the breached May-to-July uptrend line at ¥143.35.
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