Traders Eye NFP Report
Investors have been buying the dip after weeks of selloff. The U.S. Dollar weakened, pushing other peers above current resistance levels. The DAX broke above 14300 and headed toward 14600.
The focus this week will be on Friday’s U.S. payroll numbers, which are projected to show a smaller advance in May. The Federal Reserve is on track to hike interest rates by 50bp at the next couple of meetings but a continued slowdown in payrolls and wage growth could eventually convince policy makers to slow the pace of tightening after the summer.
DAX – Going for 15000?
The index ended its consolidation and broke above 14300. A sustained break above 14600 could spur bullish momentum towards 15000. The price area around 14200 could now serve as a support.
EUR/USD: The euro traded higher and a further test of 1.08 seems realistic. However, the risk for corrections within the recent straight-lined uptrend remains high with the focus turning to 1.0650.
GBP/USD: The cable attempted to break above 1.2660 but bullish momentum faded. If the pair slips back below 1.2580, we expect a potential correction to deepen with lower targets seen at 1.25 and 1.24.
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