Ok, the US dollar weakened despite good labor market numbers.
Fundamentally,
despite the low inflation, the US dollar should be more attractive because the US economy is still doing fine (only circumstantially, better than others' economies!) and the Fed stays pretty hawkish.
Obviously, the dollar fell because wage growth rose less than expected!
But why does the wages weights more than the payrolls this time?
Basically numbers tells us what: is easy to find a job, but that doesn't count too much since the workers don't feel wealthy!
And that doesn't sound good for the "dollar's economy".
Technically,
adding to the "mixed" wages-payrolls which is puzzling for traders,
the historical (2 years ago) 1.1120 support zone made most of the traders more easy to choose bias for a EUR/USD rally.
Makes sense as long as a strong historical support to be broken it takes strong-strong data, not just a mix surrogate!
Buying EUR/USD is the first normal reaction.
Still, on fundamental grounds, the USD looks ok.
Next week, the same traders might digest overall fundamental USD situation and they might change bias...
So, I might be stubbornly wrong, but I think is possible to see EUR/USD capped by 1200 - 1215 area (resistance)
...but who the fk knows the future, right?
Fundamentally,
despite the low inflation, the US dollar should be more attractive because the US economy is still doing fine (only circumstantially, better than others' economies!) and the Fed stays pretty hawkish.
Obviously, the dollar fell because wage growth rose less than expected!
But why does the wages weights more than the payrolls this time?
Basically numbers tells us what: is easy to find a job, but that doesn't count too much since the workers don't feel wealthy!
And that doesn't sound good for the "dollar's economy".
Technically,
adding to the "mixed" wages-payrolls which is puzzling for traders,
the historical (2 years ago) 1.1120 support zone made most of the traders more easy to choose bias for a EUR/USD rally.
Makes sense as long as a strong historical support to be broken it takes strong-strong data, not just a mix surrogate!
Buying EUR/USD is the first normal reaction.
Still, on fundamental grounds, the USD looks ok.
Next week, the same traders might digest overall fundamental USD situation and they might change bias...
So, I might be stubbornly wrong, but I think is possible to see EUR/USD capped by 1200 - 1215 area (resistance)
...but who the fk knows the future, right?
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