The NZD/USD pair is advancing sharply higher as investors have shrugged-off vulnerable employment data. The asset is likely to display a ‘Double Distribution’ trading session as a decent rally has been witnessed after an upside break of morning inventory distribution and further distribution is highly expected. The major has climbed to the round-level resistance of 0.6300.

24-hour view: “Yesterday, we expected the decline in EUR to extend but we were of the view that ‘the major support at 1.0100 is unlikely to come under threat’. We indicated, ‘there is another support at 1.0130’. During NY session, EUR dropped briefly to 1.0121 before rebounding to end the day unchanged at 1.0164. Downward pressure has eased and EUR is unlikely to weaken further."

USD/RUB reverses the week-start gains around 57.80, down 1.15% intraday heading into Tuesday’s European session. In doing so, the Russia ruble (RUB) pair cheers the downbeat US dollar, as well as firmer oil prices of late. That said, the US Dollar Index (DXY) prints a four-day downtrend, paring intraday losses around 106.40 by the press time.

GBP/USD is extending its pullback from three-week highs of 1.2091 in the European session, as risk-off flows dominate amid the worsening European gas crisis and an imminent recession in Germany. Investors seek refuge in the traditional safe-haven asset, the US dollar, as the buck picks up fresh bids to recapture 106.50 against its major peers.

EUR/USD gyrates in the low-1.0200s as a clear direction in the markets remains absent in the first half of the week, while cautiousness remains on the rise among market participants in light of the upcoming Fed event. In the meantime, threats of further deterioration of the energy scenario, particularly regarding the supply of Russian gas to Germany (via the Nord Stream 1 pipeline)

The NZD/USD pair witnessed some selling on Thursday and moved away from a multi-week high, around the 0.6270-0.6275 region touched the previous day. The pair remained on the defensive through the early European session and was last seen trading around the 0.6225-0.6230 area, just a few pips above the daily low.