Forex trading plan for July 2
The greenback strengthened after the strong data releases in the United States. According to ADP, June Non-farm payrolls came out at 237K, this is well above the forecasts. As a result, the market sentiment improved ahead of the official labor market data release on Thursday (NFP forecast: 231K).
EUR/USD extended the decline following the US releases.The Greek question remains unclear: technically, the country has entered the default zone yesterday, but negotiations continue.ECB head Mario Draghi will deliver a speech on Thursday.
Technically, EUR/USD holds above the major 1.1050 area. Market hopes for a Greek solution continue supporting the currency. Resistance is now seen at 1.1155. Fix below 1.1050 would open the way for a rapid decline to 1.0820.
GBP/USD slipped to a 2-month low around 1.5600 on Wednesday. A range of factors pressures the cable: Greek problem, weak UK manufacturing PMI and BOE Carney’s dovish comments. Watch the UK Construction PMI tomorrow.
Safe haven assets stay in demand, but USD/JPY surged to 123.00 on the US figures. We are trading in a sideways 122.00 – 124.50 range. There is an open gap left (bullish sign). However, any bad news from Greece will rapidly pull the pair down. In Japan there are no important releases left this week.