USDJPY: dollar has moved to a correction
The trading instrument USDJPY is developing a downward dynamic within the framework of the correction after a significant strengthening at the end of last week. Meanwhile, the pair moved to an active growth gap at the beginning of the session, intending to carry out its leveling.
The US currency gained notable support at the end of the previous week from a strong US jobs report. Thus, the United States economy increased the number of new job openings by over 500.0 thousand, excluding the agricultural sector, beating analysts' expectations of 185.0 thousand, The December figures were corrected to 260.0 thousand from 223.0 thousand. The unemployment rate for the same period declined to 3.4% from 3.5% with a market expectation of 3.6% and average pay per hour slowed to 0.3% from 0.4% for the month and to 4.4% from 4.9% for the year, against neutral forecasts by economists.
- Resistance levels: 132.00, 133.00, 133.61, 134.50.
- Support levels: 131.00, 130.00, 129.00, 128.00.
USDCHF: the pair is consolidating near a new local high
The currency pair USDCHF is displaying a mixed trend, testing the level of 0.9250 retracing the local high of January 31. Investors are refraining from increased activity, waiting for new signals and assessing the strong US jobs data released last Friday.
Thus, investors' attention was focused on a sharp increase in the number of new vacancies, excluding the agribusiness sector, amounting to 5170.0 thousand against 260.0 thousand in December, with the market estimate of only 185.0 thousand. Unemployment fell to 3.4% from 3.5% at the expected 3.6%. Service sector business activity from ISM in January edged up to 55.2 points against estimates of 50.4 points, and the value from S&P Global rose to 46.8 points against 46.6 points, exceeding neutral expert estimates. Thus, the US Federal Reserve received an additional signal due to strong macroeconomic data, which will allow continuing to tighten monetary stimulus. Recall that at the end of the extreme summit last week, the agency raised the interest rate by 0.25% and urged market participants not to speculate on the topic of the end of the monetary tightening cycles.
- Resistance levels: 0.9300, 0.9350, 0.9400, 0.9478.
- Support levels: 0.9250, 0.9200, 0.9150, 0.9100.
USDCAD: US labour market data has supported the 'American'
The USDCAD trading instrument showed moderate decline, completing a notable increase at the end of the previous week, testing 1.3400 area, the local high of January 31.
Traders paid attention to the report on the US January employment market published at the end of last week, intending to forecast what impact the statistics will have on the further announcement of the US Federal Reserve's monetary stimulus. Thus, the non-farm payrolls rose by an additional 517,000 jobs, almost twice the experts' forecast, while the number of unemployed rose to 3.4% from 3.5% at the analysts' estimate of 3.6%. Business activity according to the Institute for Supply Management improved to 55.2 points from the previous 49.2 points with an expectation of 50.4 points.
- Resistance levels: 1.3450, 1.3500, 1.3550, 1.3600.
- Support levels: 1.3400, 1.3350, 1.3300, 1.3226.
Gold analysis
The precious metal is trading within the correction, testing the 1877.0 mark.
The day earlier the asset had seen its steepest fall since early summer 2022, at $90.0 from 1950.0, to a low of 1860.0 on Friday, showing vulnerability to the US dollar rising to 102.900 from 101.500 due to the reaction to the strong US labour market report. Market participants interpreted the consolidation as a technical correction, with no fundamentals, as the main asset backdrop is clearly bullish for gold due to record gold demand in 2022 at 4,741 thousand tonnes, marking a new peak since 2011. The key buyers of the precious metal were central banks, most of whom wished to remain anonymous. Economists estimate that financial authorities are building up the margin of safety for national economies in the face of risks of being hit by sanctions from other countries.
- Resistance levels: 1900.0, 1960.0.
- Support levels: 1860.0, 1800.0.