EUR/USD weaker, GBP/USD and USD/JPY stronger ahead of US jobs report
The euro is struggling to hold gains following the ECB meeting, but USD/JPY is rising ahead of the monthly non-farm payrolls.
EUR/USD falters after ECB meeting
The price of EUR/USD rallied after yesterday’s European Central Bank (ECB) meeting did not give an explicitly dovish view. Though with the ECB president still leaving open the door to more quantitative easing (QE), the pair was unable to hold on to all its gains.
Fresh gains will target $1.1326, with a daily close above this level needed to break resistance. A turn lower below $1.12 would suggest a decline to $1.112 is in the offing.
GBP/USD still clawing its way higher
Twice this week rallies to the $1.274 area have faltered for GBP/USD, as also happened on 27 May.
A drop back to $1.27 overnight found support, so we look for a push towards $1.274 again, with a break above here needed to establish a new higher high. A move below $1.264 would begin to signal that the bounce is over.
USD/JPY tiptoes higher
Having bounced from ¥107.70, the price of USD/JPY has made modest gains, although it has not managed to put much of a dent in the sharp drop at the end of May.
The short-term bullish view persists so long as the price remains above ¥107.00, but until the price recovers ¥109.50 then the outlook is mixed at best.
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