Important events today:

US and GB-banking weekend.

The U.S. Congress may approve a new debt ceiling this week. Last week congressmen, after a series of negotiations, were able to reach a consensus on the main parameters of the federal budget deficit. Today is a U.S. holiday and Congress will vote on the issue on Wednesday. If no one argues with anyone over the weekend, the debt ceiling limit will be approved, which will put short-term pressure on the U.S. currency value, as the dollar has strengthened considerably in the last two weeks because of the confusion over the debt ceiling.

The weakening of the dollar could end either on June 2 or June 14. In the first case there will be a report on the US labor market, and if we see strong growth of wages, the market may again start to talk about the need to keep the current interest rates for a long period. In the second case the market will be “dragged” up to the Fed meeting and the quarterly expiration of futures and options, after which it will start to take positions.

Recommendations: Buy 1.0716/1.0680 and TP 1.0784.