Strong ISM non-manufacturing reading and remarks by Chairman Jerome Powell that the Fed may raise interest rates above neutral level given the remarkably positive US economic growth lifted the USD across the board. Noticeably, USD/JPY broke through the 114 handle, while EUR/USD further slipped below the 1.15 baseline.

We are waiting for U.S. non-farm payrolls now. The combination of a higher-than-expected ADP employment report and the strong ISM survey increased market expectations for U.S. jobs report, so the risk of disappointment is also higher. We think that tomorrow’s jobs report may be a breaking event for near-term trend.

This is how we trade now:


Trading strategy: Await signal

Open: -

Target: -

Stop-loss: -

Recommended size: -

Short analysis: While the outlook is quite negative due to daily close below 1.1497, 61.8% of the 1.1301-1.1815 rise, trading near the 30-day lower bolli-band, now at 1.1499, hints that the market is oversold. We are waiting for U.S. non-farm payrolls. In our opinion this release may change market picture.

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