EUR/USD: The spot is paralyzed during the Sino-American talks

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The pair of Euro / dollar currencies, like other risky asset classes like actions, capped on firm levels, the robberies remaining pending new concrete elements capable of justifying arbitrations, especially within the framework of the unbearable trade war waged by Washington, or rather by a single man …

And this while we enter the 2nd day of Sino-American talks. “The markets are still waiting for tangible evidence,” explains Philippe Crevel in his letter Eco dated June 07. “The two leaders have agreed to continue discussions to resolve disputes over customs duties and access to Chinese rare land. The interview has led to a slight increase in oil prices, investors hoping for a booster in China in the event of a trade agreement. Peace talks between Russia and Ukraine, on the other hand, remain in order: Moscow requires more or less explicitly. from kyiv. “

Deutsche Bank notes that the President of the United States Economic Council, Kevin Hassett, told CNBC to expect “any control of American exports to be relaxed and that rare land will be released in volume”.

“This therefore suggests a potential compromise in which the United States would relax its export controls in exchange for China easing by its own restrictions on rare earths,” concludes Deutsche Bank.

Bovers digest while waiting for the solid federal report on employment published on Friday. Here are the main lessons as a reminder: the unemployment rate first of all, remains stable at 4.2% of the active population. Average time wages are growing a little more than anticipated (+0.4%), and above all, job creations in the private sector, at 139,000, above expectations, completes a solid portrait of employment. What to put into perspective the somewhat alarmist publication of the ADP cabinet a little earlier last week. And above all enough to bring down the pressure on Jerome Powell’s shoulders, which has been undergoing presidential pressure since the start of the mandate of Trump to soften the rates.

For its part, it is Lagarde à Frankfurt does not undergo the pressure of the executive in Brussels, or even in Paris, Berlin or Rome. As a reminder, the powerful pan -European monetary institution once again lowered its main “rent” from the euro, 25 base points last week, revealing a break in this process under monetary easing.

On the statistical front, little to put in the tooth this morning, apart from the feeling of investors’ confidence in the euro zone, came out in slight well in negative territory at -5.3 points.

We will also note a Trump speech, scheduled at 10:30 p.m., on the occasion of the 250th anniversary of the American army in Fort Bragg.

At midday on the foreign exchange market, the euro was treated against $ 1,1420 approximately.

Key graphics elements

The pair of currencies currently succeeds in the highly important graphic test of the mobile average at 50 days (in orange). A breath of breath is necessary before the conquest of new highests. That is to say the formation of several support on this trend curve. We have two of us.

Medium term

In view of the key graphic factors that we have mentioned, our opinion is neutral in the medium term on Euro dollar parity (Eurusd).

We will keep this neutral opinion as long as the EURO Dollar parity prices (EURUSD) are positioned between the support at 1,1202 USD and the resistance to 1,1460 USD.

Daily data graphics