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Monday, April 10th
The EUR/USD pair remains consolidative at the start of this week, keeping its positions within striking distance of its monthly lows, posted this morning at 1.0570 spot. Today the pair continues to extend its bearish bias, despite worse-then-expected NFP, seen last Friday, as general US Unemployment Rate ticked lower, showing that situation on the US labor market is not so bad, thereby broadly supporting US bulls. Moreover, improved risk-on sentiments, triggered by positive outcome of US-China Summit, where both leaders indicated on strong relationships between two largest economies of the world, are also providing some negative pressure on the pair at the start of this week. Today only Fed Chair J.Yellen’s speech will be able to bring some short-term trading opportunities, so the pair will keep tracing global market’s trend for any further directional improvements.
The GBP/USD pair has bounced off its multi week lows, posted at 1.2366, and now is trying to recover some ground, as bears have taken a breather after Friday’s massive rally amid slightly better risk-on tone. On Friday the pound came under strong selling pressure across the board after bloc of disappointing UK fundamentals, featuring Manufacturing Production and Retail Sales, significantly weighed the pair. Moreover, strong spike of demand for the US dollar, despite weak NFP data seen last trading session, also collaborated with pair’s recent decline. Nothing much is scheduled in data calendar for this Monday, except Fed Chair J.Yellen’s speech, that will be held in NA afternoon, so the pair will continue to follow global market’s sentiments to determine its further direction.
The yen was the worst performer of this Asia amid broad demand for the US dollar and better risk-on tone, based on positive outcome of the US-China Summit. On Friday leaders of the two largest economies remained satisfied with peaceful outcome of its two-day meeting, thereby boosting risk-on sentiments across the market. Additionally, the market remained unimpressed this morning by upbeat Japanese current account data, as the demand for the US currency continues to dominate on the market so far, limiting any yen’s chances to recover some ground. Now all traders’ focus remains on J.Yellen’s speech, that is scheduled on late NA session, but until then the pair will continue to stay influenced by broad RO-RO trend and USD price actions.
The AUD/USD pair corrects slightly higher this morning after its drop seen in Asia, based on broad bid tone around the greenback. Seems that US bulls remained resilient to weak Friday’s NFP numbers and now are pushing the pair to extend its retreat, refreshing nearly 3-month lows this morning at 0.7478 level. Moreover, the Aussie remains unable to benefit from improved sentiments around risk associated assets, as disappointing data from Australian housing market provided the pair with additional bearish impetus this morning. Looking ahead, today we have deadly quiet economic docket, thereby the USD price dynamics will remain as a key driving factor across the market, setting up pair’s further movement course.
The main events of the day:
Fed Chair J.Yellen speech – 23.10 (GMT +3)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0527 R. 1.0695
USDJPY S. 109.55 R. 112.11
GBPUSD S. 1.2291 R. 1.2517
USDCHF S. 0.9995 R. 1.0143
AUDUSD S. 0.7462 R. 0.7564
NZDUSD S. 0.6885 R. 0.7015
USDCAD S. 1.3303 R. 1.3481
Your European ECN-broker,
Forex.ee