No important events are expected today.

The currency market reacted too emotionally to Friday’s U.S. labor market statistics. Yes, Non-Farm came out strong, but the growth rate of average earnings fell to 4.4%, dropping to the lowest since August 2021. Wages have been growing slower than inflation for the last year and against this backdrop we should expect the Consumer Price Index to decline, because it was the high growth rate of average earnings combined with a strong increase in the money supply that triggered high inflation in the United States.

Now both wages are growing slowly and the money supply is shrinking. There were rumors in the market that after Friday’s labor market rate hike the Fed will be forced to raise interest rates more actively this year, but there is no activity from bankers at the interbank in London – interest in the American currency is low.

Recommendations: Buy 1.0775/1.0750 and TP 1.0865.