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Currency Feed – New York Close Report – Monday 8th May

EUR/USD – Current Price $1.0988 (+$0.0004)

EUR/USD is little changed ahead of the Wall Street close although a modest gain earlier today took the pair to its best level since November 11th at $1.0999. The pair had been lower earlier in the session as the recent bullish sentiment in the Euro just lost some steam which saw the pair dip to a low $1.0948. The pair gained however after what was a relatively mixed US jobs report  – the US economy added 211K jobs in April, above the market consensus for 190K and a marked improvement on last month’s 79K (revised lower from 98K). The unemployment rate also fell another tenth to 4.4% (f/c. 4.6%) but it wasn’t all good news as average hourly earnings slowed to just +2.5% year-on-year (f/c. +2.7%). From a technical view, it looks like we ran into come resistance around the $1.10 handle earlier today, above which we look for the November 4th high of $1.1143. On the downside, today’s low at $1.0948 and yesterday’s low at $1.0873 may offer some support.

GBP/USD – Current Price $1.2963 (+$0.0043)

GBP/USD has gained today, extending to a daily peak of $1.2975 which is the best level for the pair since September 30th 2016. Sterling strength was evident early in the session after a strong showing by the ruling conservative party in the local council election which could be a good indication for the upcoming general election. Dollar weakness followed in the afternoon after a mixed US jobs report  – the US economy added 211K jobs in April, above the market consensus for 190K and a marked improvement on last month’s 79K (revised lower from 98K). The unemployment rate also fell another tenth to 4.4% (f/c. 4.6%) but it wasn’t all good news as average hourly earnings slowed to just +2.5% year-on-year (f/c. +2.7%). Above today’s high, we look for resistance at the September 30th high of $1.3022 and September 29th high at $1.3058. On the downside, today’s low at $1.2898 and yesterday’s low at $1.2829 are in focus.

USD/JPY – Current Price ¥112.59 (+¥0.16)

USD/JPY is slightly higher ahead of the Wall Street close having reached a session peak of ¥112.76 in recent trade versus the earlier low at ¥112.06. The Dollar has lost ground against most of the major pairs but Yen weakness saw the pair grind higher thus afternoon. Safe-haven demand for the Japanese Yen would have been limited today by the broad improvement in risk sentiment, especially in Europe. A mixed US jobs report may also have provided some support – the US economy added 211K jobs in April, above the market consensus for 190K and a marked improvement on last month’s 79K (revised lower from 98K). The unemployment rate also fell another tenth to 4.4% (f/c. 4.6%) but it wasn’t all good news as average hourly earnings slowed to just +2.5% year-on-year (f/c. +2.7%). From a technical view, yesterday’s high at ¥113.04 may offer some resistance ahead of the March 16th high at ¥113.54. On the downside, today’s low at ¥112.06 , Wednesday’s low of ¥111.93 and Tuesday’s low at ¥111.75 are in focus.

GBP/EUR – Current Price €1.1800 (+€0.0038)

GBP/EUR is higher ahead of the Wall Street close. The pair found some upside during the early European exchanges as it emerged the UK conservative party had seen a strong showing in the local council elections which could be a good indication for the upcoming general election. Euro strength meanwhile that been evident earlier in the week did dissipate somewhat today as we get closer to the French election on Sunday. Above today’s high at €1.1811, we look for resistance at yesterday’s high at €1.1825 and Wednesday’s high at €1.1850. On the downside, today’s low at €1.1750 may offer some support ahead of the April 26th low at €1.1719.

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