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Daily Report: Dollar Mixed, Stocks Soft ahead of Non-Farm PayrollDollar is trading in recent range against euro and sterling as focus turns to non-farm payroll report from US today. The greenback gained against swiss franc and yen this week and remains firm. Markets are expecting NFP to show 225k growth in July with unemployment rate unchanged at 5.3%. Wage growth will also be a focus as average hourly earnings are expected to grow 0.2% mom in July. The leading indicators for NFP were mixed. ADP private employment missed expectations and rose only 185k. Employment component of ISM manufacturing also dropped from 55.5 to 52.7. Nonetheless, employment component of ISM non-manufacturing jumped sharply from 52.7 to 59.6. The four week moving average of initial jobless claims also dropped quite notably from 279k to 268k. It's still uncertain whether Fed will hike rate in September and FOMC members will look into today's NFP to find the needed evidence for "some further improvement in labor market" for their decisions. | |
Featured Technical Report | |
USD/CAD Daily OutlookDaily Pivots: (S1) 1.3069; (P) 1.3132; (R1) 1.3172; More... A temporary top is in place at 1.3213 and intraday bias is turned neutral in USD/CAD first. Some consolidations would be seen but near term outlook stays bullish as long as 1.2859 support holds. Above 1.3213 will extend recent up trend to next projection level at 1.3287. Meanwhile, break of 1.2859 will confirm near term topping with bearish divergence condition in 4 hours MACD. In such case, deeper pull back would be seen. |
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Orders and Options Watch | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
US Session: Orders and Options WatchGBP: Cable tumbled after BOE, bids at 1.5570-80, 1.5525-35, 1.5500 and 1.5485 were filled but buy orders are still noted at 1.5465-70 and 1.5450, buying interest should emerge around 1.5425-30 and 1.5400. On the upside, offers are lowered to 1.5555-60, 1.5590-00 and 1.5620-25, sell orders are expected at 1.5640-50 (stops above), 1.5680 and 1.5700-10 (stops above), selling interest is tipped at 1.5725-30 and 1.5750. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Trade Idea: EUR/GBP - Buy at 0.7000Although the single currency fell to 0.6951 yesterday, as euro has rebounded again after holding above recent low at 0.6936, suggesting consolidation above this level would be seen with mild upside bias for another bounce to 0.7098 resistance, break there would encourage for a stronger rebound to 0.7120-25, however, resistance at 0.7161 should cap upside, bring further choppy trading later. Trade Idea: USD/CAD - Buy at 1.3060As the greenback has maintained a firm undertone after resuming recent upmove, bullishness remains for further gain to 1.3210-15, then 1.3250, however, loss of upward momentum should prevent sharp move beyond 1.3300 and price should falter below 1.3350 (50% projection of 1.2128-1.3103 measuring from 1.2862), bring correction later. We are keeping our count that complex wave iv from 1.2835 ended at 1.1920 Candlesticks Intraday Trade Ideas Update Schedule (GMT): Elliott Wave Daily Trade Ideas Update Schedule (GMT): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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