USD

The US Dollar has had a positive week ahead of todays all important non-farm payroll data release for May at 1.30pm. Consensus targets a strong reading of around +890k as average hourly earnings are also released at the same time (inflation related). All told, despite the Dollar holding in its longer term down trend, there are some short-term levels that investors are likely to look at closely, a break of which would suggest increased US Dollar demand could be likely. President Biden will also speak following the release of today’s US data.

GBP
Sterling edged lower against the US Dollar having rejected yet again the 1.4200 zone this week (now down over 1 cent), opening just below short- term support of $.14100. Early sellers versus the Dollar were seen when Europe opened for business. UK PMI services for May yesterday beat expectations as the Pound still holds onto its gains against the Euro this week at the highs of 1.1640. However, there is a ‘significant chance’ the 21st June date for ending lockdown could now change, a government adviser has warned as the Indian variant continues to rise.

EUR
The Euro traded back to a three week low in Asia of 1.2105 against the USD. Technically, a close below 1.2100 would suggest a deeper correction is possible for the common currency. Eurozone retail sales data for April is released at 10.am.

Opening interbank levels:
GBP/USD 1.4095
GBP/EUR 1.1642
EUR/USD 1.2107