The dollar stays low at the beginning of the week, after shock from US Non-Farm payrolls data that came at 38K against 164K forecast, pressured US currency.
Strongly disappointing US jobs data prompted investors to change view about US interest rate hike this months and exit dollar-long positions.
The Euro consolidates under fresh post-data high at 1.1372 against the dollar, maintaining Friday’s strong gains and holding positive sentiment.
Japanese yen marked strong gains on acceleration to 106.35, ending week is strong bearish mode and eyeing key support at 105.53, yen’s 18-month high.
Spot gold also benefited from weaker dollar and bounced from dangerous $1200 zone, following last Friday’s 2.8% jump that extended briefly on Monday to fresh two-week high at $1248.
Bullion recovers ground after prospects of US rate hike dim, reducing month-long pressure that pushed gold’s price from $1300 to $1200.
On the other side, British Pound failed to hold post US data gains, after latest polls released during the weekend, showed rising number of Brexit supporters.
Cable has fully erased last Friday’s gains and dipped to fresh two-week low on Monday, on fresh bearish acceleration that came after Monday’s gap-lower opening.
Crude oil is positive overall, as weaker dollar and attack on Nigeria oil infrastructure tighten supplies but gains were so far capped by signs of recovering US output.
US Crude oil trades at the upper side of four-day range, holding below psychological $50, following repeated failure to clear barrier and resume four-month recovery from multi-year low at $26.04.

Today’s highlights

Monday’s calendar is light, with German Factory orders that fell 2% in April from upward-revised March’s 2.6% rise and -0.4% forecast, being the highlight of the European session.

Across the Atlantic, Fed’s chief Yellen is again in focus. Yellen is due to speak at 16:30 GMT at an event in Philadelphia and investors will be looking for signals about Fed’s next step after surprisingly weak US jobs data that reduced chances of rate hike this month to the minimum.

Important levels

EURUSD maintains strong bullish tone after Friday’s sharp rally surged above daily cloud top and closed briefly above Kijun-sen pivot at 1.1355. Near-term action holds in consolidation range, with extended technical pullback, not ruled out.
Rising daily cloud top, currently at 1.1321, holds for now, with extended dips seen towards next strong support at 1.1280 and downside breakpoint laying at 1.1235.
At the upside, Friday’s peak at 1.1372 marks initial resistance, followed by strong barriers at 1.1416/45, break of which to open 1.1500 zone for test.

GBPUSD came under strong pressure and erased last Friday’s gains. Fresh weakness through key near-term support at 1.4385, penetrated into rising daily cloud and posted fresh low at 1.4350. Technicals turned bearish and now focus strong support at 1.4330, with further bearish extension to pressure daily cloud base at 1.4265.
Corrective upticks should be ideally capped at 1.4480, session high, posted after gap-lower opening.
USDJPY consolidates above fresh low at 106.35, posted after Friday’s sharp fall. The pair ended week in long red candle, signaling further weakness and possible extension towards key support at 105.53, 03 May low.
Initial resistance lies at 107.55, followed by 108.29 and 108.50, below which, extended rallies should be ideally capped.

GOLD consolidates under session high at $1248, posted on extension of Friday’s strong rally. Bounce from $1200 zone sidelined downside risk, on higher low formation. Technicals are turning positive and support fresh upside extension towards next barriers at $1251 and $1264.
Corrective easing so far holds above initial support at $1238, ahead of more significant $1232 support, which is seen as ideal reversal point.
Conversely, bearish extension below $1222 support, would signal an end of recovery phase and shift focus lower again.

 , Daily Market Outlook