US Non-Farm Payrolls Data Is Behind Us, Fed Rate Decision Is Coming Up
Last week, the US Labor Department reported that the US nonfarm payrolls rose by 2.509 million in May, compared to expectations for a decline of 8.00 million. The U.S. jobless rate fell surprisingly in May to 13.3% from 14.7% in April. the Jobs Report was good news for the American labor force and supported the greenback last Friday.
Looking ahead, pay attention to the Fed Monetary Policy Meeting this week. The meeting will give markets new guidance about how it plans to combat the economic fallout from the coronavirus.
In the previous meeting, the Federal Reserve left its benchmark rate unchanged in the range of 0% to 0.25% and said it would keep rates within the current range until the economy has moved on from the Covid-19 crisis and is on track to meet the central bank's targets. Watch out this week's rate decision, the market will also respond to Chairman Jerome Powell’s comments at his press conference.
We will also closely watch the US CPI inflation figures on Wednesday Consumer prices are expected to come out at -0.1% last month and 0.2% over the prior year, according to estimates. Excluding the cost of food and fuel, core inflation is projected to be 1.3% on a year-over-year basis.
Moreover, the Eurozone GDP will be published on Tuesday and it is expected to drop to -3.8% q-o-q growth. This would lead to an annual realization of -3.2%.
The EURUSD pair dropped back below the 1.1307 main resistance level. As long as the pair stays below 1.1307 on a daily basis, we will face the support levels at 1.1237 and 1.1165. On the upside, if the pair rises above 1.1307, the next resistance level can be found at 1.1365.
Support :1.1237 - 1.1165 - 1.1114
Resistance : 1.1307 - 1.1365 - 1.1421
The GBPUSD pair closed last week below the 1.2671 major resistance level. As long as the price stays below 1.2671, on a four hourly basis, the rise may pause and we will follow 1.2572 as a support level. On the other hand, if the pair goes beyond 1.2671, the next resistance level is holding at 1.2768.
Support : 1.2572 - 1.2502 - 1.2428
Resistance: 1.2671 - 1.2768 - 1.2838
The USDJPY pair closed last week below the 109.72 major resistance level. As long as the pair stays below 109.72 on a daily basis, we might see some pullbacks and we will watch the support levels at 109.39 and 109.09. On the other hand, if the price goes beyond 109.72, the next resistance level will be placed at 110.36.
Support: 109.39 - 109.09 - 108.79
Resistance: 109.72 - 110.36 - 110.93
Keep your eye on the 17.11 major support level in the Silver Price. As long as the price stays above 17.11 on a daily basis, the fall may be limited and we will see resistance level at 17.63. On the downside, if the price drops below 17.11, the next support level can be seen at 16.80.
Support: 17.11 - 16.80 - 16.52
Resistance: 17.63 - 18.16 - 18.61
07 Jun 20 (Sun)
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