Dollar Dives on Huge NFP Miss, European Majors Jump
Action Insight Mid-Day Report 5-7-21

Dollar Dives on Huge NFP Miss, European Majors Jump

Dollar dives sharply in early US session after huge employment data miss. Canadian Dollar is slightly weaker, also on job data disappointment. Euro and Swiss Franc are quick to jump on assaulting the greenback. But Yen is not too far behind, as stocks could be under some pressure after the data. As for the week, Dollar is set to end as the worst performing one without little doubt. Kiwi and Aussie are currently strongest, but Euro has the potential to overtake them.

Technically, with the current surge, EUR/USD is likely ready to resume the rise from 1.1703. Firm break of 1.2149 will confirm and target 1.2242/2348 resistance zone. USD/JPY's break of 108.70 minor support also suggests that recovery from 107.47 has completed, and retest of this low could be seen soon. Eyes will now be on 1.4008 resistance in GBP/USD and 0.7815 resistance in AUD/USD to confirm more dollar bearishness.

In Europe, at the time of writing, DAX FTSE is up 0.35%. DAX is up 0.89%. CAC is down -0.13%. Germany 10-year yield is down -0.024 at -0.244. Earlier in Asia, Nikkei rose 0.09%. Hong Kong HSI dropped -0.09%. China Shanghai SSE dropped -0.65%. Singapore Strait Times rose 0.86%. Japan 10-year JGB yield dropped -0.0045 to 0.085.

Full Report Here

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EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.2015; (P) 1.2043; (R1) 1.2093; More....

EUR/USD's strong break of 1.2075 minor resistance suggests that pull back from 1.2149 has completed at 1.1985. Rise from 1.1703 is likely ready to resume. Intraday bias is back on the upside. Break of 1.2149 will confirm and target 1.2242/2348 resistance zone. In case of another fall, we'd continue to expect strong support from 38.2% retracement of 1.1703 to 1.2149 at 1.1979 to bring rebound.

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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Fundamental Analysis | Technical Analysis
In-depth Reports
BOE Predicts Economy to Expand at Strongest Pace since WWII; Announces QE Tapering from this Month
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RBA Keeps Policy Intact but Signals Amendments in July
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Economic Calendar
GMT Ccy Events Actual Forecast Previous Revised
22:30 AUD AiG Performance of Services Index Apr 61 58.7
23:30 JPY Labor Cash Earnings Y/Y Mar 0.20% -0.50% -0.40%
23:50 JPY Monetary Base Y/Y Apr 24.30% 21.90% 20.80%
01:30 AUD RBA Monetary Policy Statement
01:45 CNY Caixin Services PMI Apr 56.3 54.2 54.3
03:00 NZD RBNZ Inflation Expectations Q/Q Q2 2.05% 1.89%
03:03 CNY Trade Balance (USD) Apr 42.9B 28.0B 13.8B
03:03 CNY Imports (USD) Y/Y Apr 43.10% 23.30% 38.10%
03:03 CNY Exports (USD) Y/Y Apr 32.30% 35.50% 30.60%
03:03 CNY Trade Balance (CNY) Apr 276.5B 88B
03:03 CNY Imports (CNY) Y/Y Apr 32.20% 12.60% 27.70%
03:03 CNY Exports (CNY) Y/Y Apr 22.20% 30.70% 20.70%
05:45 CHF Unemployment Rate M/M Apr 3.10% 3.60% 3.30%
06:00 EUR Germany Industrial Production M/M Mar 2.50% 2.00% -1.60% -1.90%
06:00 EUR Germany Trade Balance (EUR) Mar 14.3B 22.3B 19.1B 18.9B
06:45 EUR France Trade Balance (EUR) Mar -6.1B -5.4B -5.2B -5.1B
06:45 EUR France Industrial Output M/M Mar 0.80% 2.00% -4.70%
07:00 CHF Foreign Currency Reserves (CHF) Apr 914B 930B
08:00 EUR Italy Retail Sales M/M Mar -0.10% -1.50% 6.60%
08:30 GBP Construction PMI Apr 61.6 62.5 61.7
12:30 CAD Net Change in Employment Apr '-207.1K -160.5K 303.1K
12:30 CAD Unemployment Rate Apr 8.10% 7.80% 7.50%
12:30 USD Nonfarm Payrolls Apr 266K 950K 916K 770K
12:30 USD Unemployment Rate Apr 6.10% 5.70% 6.00%
12:30 USD Average Hourly Earnings M/M Apr 0.70% 0.10% -0.10%
14:00 USD Wholesale Inventories Mar F 1.40% 1.40%
14:00 CAD Ivey PMI Apr 67 72.9