Morning Insights 4th June

Simon Alagbe

Analyst


Instrument: US100

Technical Analysis

Bullish Preference: Buy position is envisaged if price trades above 13546.16 with take profit at 13562.97.

Bearish Preference: Sell position is envisaged if price trades below 13503.43 with take profit at 13484.52.

Fundamentals:

Fed Chair Powell Speaks (USD) 12:00 PM

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

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

Unemployment Rate (USD) 1:30 PM

         

Comment: U.S. stocks ended lower on Thursday, with tech shares dragging on the Nasdaq Composite, as investors balanced concerns about inflation and the Federal Reserve reining in stimulus with relief about corporate tax hikes. A better-than-expected U.S. weekly unemployment report and private payrolls numbers for May pointed to strengthening labour conditions, ahead of the closely watched U.S. payrolls report due on Friday. A measure of service sector activity increased to a record high.



Instrument: USDJPY

Technical Analysis

Bullish Preference: Buy position is envisaged if price trades above 110.359  with take profit at 110.509.

Bearish Preference: Sell position is envisaged if price trades below 110.120 with take profit at 109.980.

Fundamentals:

Fed Chair Powell Speaks (USD) 12:00 PM

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 dollar climbed in early European trade Friday, reaching multi-week highs after a spate of strong economic data ahead of the monthly payrolls release raised the possibility of early Federal Reserve tightening. The dollar has been under pressure for much of 2021 as traders have reacted to ultra-easy Fed policies and the suggestions that these would stay in place for some time. However, this narrative is changing as the U.S. economic rebound gains in strength, throwing up the possibility of it driving policy tightening.

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