US non-farm payrolls report will be a major focus for today. Markets are expecting NFP to show another -8m job less in May. Unemployment rate is expected to jump further up from 14.7% to 19.6%. Other employment data were not too promising. ADP report showed -2.76m contraction in private sector jobs. ISM manufacturing employment improved to 31.8 while non-manufacturing employment rose to 32.1. But both were deep in contraction region. Four-week moving average of initial jobless claims also stayed huge at 2.28m.
Dollar index suffered another round of steep decline this week. Selling accelerated further after ECB announced to expand the PEPP yesterday. Technically, the strong break of 55 week EMA in DXY further affirm the case that whole rise form 88.2 (2018 low) has already completed at 102.99, ahead of 103.82 high (2016 high). Next defend zone is between 94.65 support and long term trend line at around 95.5. We’d look for support from there to bring a near term recovery.
