Morning Insights 8th May

Simon Alagbe

Analyst

Instrument: EURUSD

Intraday: Bullish

Technical Analysis

Preference: Buy position is envisaged if price trades above 1.08524 with take profit at 1.08817

Alternative scenario: Sell position is envisaged if price trades below 1.08191 with take profit at 1.07872

Fundamentals:

Average Hourly Earnings m/m  (USD) 1:30 pm 

 Non-Farm Employment Change (USD) 1:30 pm 

Unemployment Rate (USD) 1:30 pm 

Comment: The U.S. dollar weakened in early European trade Friday as the onslaught of grim economic numbers raised the spectre of negative U.S. interest rates, undermining the yield advantage of holding dollar-denominated assets and with this prices are expected to push in favour of the Euro. 




Instrument: OIL

Intraday: Bullish

Technical Analysis

Preference: Buy position is envisaged if price trades above 30.60 with take profit at 31.00

Alternative scenario: Sell position is envisaged if price trades below  30.19 with take profit at 29.86

Fundamentals:

Baker Hughes Rig count (US) 6 pm

Comment: Oil has gained in the last set of days based on optimism from the gradual reduction of lockdown around the world. It’s expected that demand would soar in the coming days but with the emergence of rumours of a mutated form of Covid-19, there are fears that the current bullish move on oil might be temporary and prices could go back to the 20s region.

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