#forexbreakfast focus forex (eng)
Weak week for the dollar. After good private sector employment figures, he has ended the week down after disappointing data on the labor market. It has lost ground against some emerging market currencies. While with the euro, after reached 1.21, it lost ground returning to the 1.2160 area. In the emerging sector an excellent week for Real, Colombian peso, and South African rand. Real benefited from the GDP figure beyond expectations, along with good macro data. In South Africa, Congress blocked the constitutional law that would have allowed white’s land to be expropriated without economic compensation. It then adds good macro data. The worst currency of the week has still been the Turkish lira. Erdogan’s statements on the need for a rate cut weighed down the exchange rate. Good week for the ruble, pending the BC meeting where a rate hike is expected to counter inflation. In Europe, the Polish Zloty has been below 4.50 for two weeks, waiting for the BC to raise rates.
Euro / Dollar
In the wake of the US bonds, the uptrend line that started from the March lows was broken. The bullish movement is losing strength. A reversal signal would be the break of the uptrend line that starts from June 2020 and passes in the 1.1950 area. Attention therefore to June 10, the day of the ECB meeting.
Euro / Pound Sterling
Calm week for eur / gbp which remains in the 0.86 area. The downside pressures were held by the supports at 0.8581 / 60. Two levels remain to be monitored. Only their break would give a bearish imprint to the exchange rate, with a possible target of 0.8472.
Euro / Yen
Weak week for Eur / Jpy which, after having tested the 134.40 level, returned to the 133 area. The trend remains upward. to be monitored in area 132 where the uptrend line that started in January 2021 passes. Only a break of the support at 131.50 would give a real signal of weakness.