Friday’s labor market release is negative for the dollar, inasmuch as the Federal Reserve will not be able to start discussing the QE program cut at its next meeting on July 28th. The next meeting will be held on September 22 and only at this time we can expect discussing the reduction of stimulus measures.

Inasmuch as the head of the Federal Reserve Jerome Powell said that the monetary authorities will warn the market in advance about the curtailment of stimulus, in this case the reduction of the QE program may begin no earlier than November 1. Therefore, for at least 4 months, the Fed will carry out a large-scale emission of dollars, which will have a negative influence on the value of the American currency.

Trading recommendation: Buy 1.1842/1.1820 and take profit 1.1885.