In my opinion bad USA data has just saved EUR/USD from going down to 1.2500 in next two weeks..however, this might be verdict suspended..next week if EUR/USD comes short of above 1.3400..then bears are still in control..very confusing scenarios...the market has got Spain in one corner..and I think Mr. Market is on the mission to sack Spain from the bond market as it did to Greece and Ireland...Mr. Market may systematically sack the PIIGS from the bond market so I am still in the bear corner...Euro zone virus may emerge again in the near future...so as you punish USD today..just remember euro zone virus is still deadly..
EUR/USD – Can the Initial Bullish Reaction to Poor NFP Extend? Where?
The Non-Farm Payroll came out 120K, badly missing the 209K forecast. This caused risk aversion, which normally gives USD strength. However, this release brings in the conflicting factor that stimulus might be needed (reversing the expectation the FOMC meeting minutes laid out on Wednesday 4/4). Therefore, the market sees the risk aversion more purely in the Japanese Yen. But for the EUR/USD, we see a sharp rally from 1.3045 to 1.3109 in the first 15-minute-reaction to the NFP. Can this extend? Looking at the 15-min chart, are seeing a throwback. If the market breaks below 1.3070 (61.8% retracement), the at least ... (full story)