Forex trading plan for August 6
The US Dollar index tested the July peak at 98.15 on Wednesday after the unexpectedly strong US non-manufacturing PMI index (10-year high of 60.3). ADP NFP disappointed, coming at 185K, but the market didn’t pay too much attention to this figures. Watch the unemployment claims on Thursday and the official NFP on Friday (your guesses are accepted here).
EUR/USD broke below 1.0900 and opened the way to 1.0820. There are no important releases to watch in euro zone this week, so watch the US data releases.
As for GBP/USD, bulls are gaining strength: the pair jumped to 1.5650 on weak ADP NFP. Thursday is going to be the key day for the cable – BOE meeting, quarterly inflation report and policy minutes are on the schedule. We expect some hawkish surprises from the UK regulator. Watch the 1.5700 resistance.
As we expected, commodity block currencies came under pressure again. AUD/USD failed to close above 0.7400 yesterday. It means that the bullish move was speculative. Watch the employment data in Australia on Thursday. Aussie will likely hit the recent levels around 0.7200 soon.
USD/JPY soared to 125.00 on the USD optimism. Next target lies at 125.80.