Daily Alert – Wednesday 2nd June 2021: All eyes on Friday’s NFP

Mark NugentDaily Alert, June 2021

Daily Alert – Wednesday 2nd June 2021: All eyes on Friday’s NFP

The markets are calm and there is little movement in equity indices and GOLD. WTI (oil) on the other hand has broken out through resistance to the upside, from a channel it has occupied since early March. This is despite the high probability that the Iranian nuclear deal will recommence, and sanctions will be lifted on Iranian oil shipments, adding significantly to global supply. I went long on WTI last night as the daily candle closed above the resistance zone. A long signal if ever there was one. Currently it is slightly in the money.

Last week’s experiment on trading the weekly charts was interesting. Both the GBPUSD and EURUSD trades made a tiny bit of money but even then, the four swap payments required to keep the trades open were hardly material. I have continued the experiment this week and I have added WTI into the mix. This approach may well be beneficial when assets move as expected on the weekly chart but their choppiness on the daily makes trading them significantly riskier.

The key risk event remaining this week is Non-Farm Payroll on Friday. Last month saw a significant miss (266K actual vs 990K expected). A second miss could well puncture the USD.

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