Forex.ee: Daily economic news digest

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Friday, March 9th

The EUR/USD pair keeps its positions in the lower end of its weekly range today near the level of 1.2300 after yesterday’s drawdown, triggered by cautious tone of the ECB President M.Draghi. As it was widely expected, the ECB left its interest rate and QE program unchanged, however, having revised lower its inflation projection for 2019. Adding to this, during the ECB press conference Mr.Draghi showed confidence in the effectiveness of the current monetary policy, which remains highly accommodative. However, seems that the pair stalled its downside trend, as investors are awaiting for another important event – the release of the NFP report, which is scheduled for the NA session. But on the euro zone side, today the EU calendar will again remain silent, so the pair will continue trace broad market trend until the key event of this Friday.

The USD/JPY pair witnessed quite volatile session, having refreshed its weekly highs near the level of 107.00, which was caused not by the results of the BoJ meeting. Earlier in Asia, totally eventless meeting of the Japanese regulator took place, where the Bank kept interest rate at the same level, while reiterating all said before. According to the accompanying statement, Japan’s inflation is still far away from its 2% target level, so it is too early to discuss stimulus exit strategy. However, the pair managed to gain almost 90 pips during Asian trading session on the back of spike of risk-on sentiments, as market’s attention shifted towards N.Korean events. The Korea’s leader Kim Jong-Un offered to suspend the nuclear missile program, which forced investors to pay attention to higher-yielding assets, thus driving the yen lower against its major rivals. Looking ahead, today all investors’ eyes will remain glued to the key event of this Friday – NFP report, which expectedly will bring fresh trading opportunities to the market during the NA session.

The GBP/USD finally recovered its positive tone following broad market trend, caused by risk-on sentiments. Recall, yesterday the pair received strong bearish impetus on the back of increased demand for the US currency. Recent greenback’s upsurge was mainly attributed to sharp drawdown of the EUR/USD pair, triggered by cautious comments from the ECB President. Adding to this, market speculations regarding “hard” Brexit are also negatively influencing the pound lately. However, the pair stalled its retreat during this Asian trading session on the back of reports of North Korea denuclearization, which triggered wave of bids for higher-yielding assets, including the pound. On the data front, today the UK will released manufacturing production data, however, it is expected that this data won’t bring any notable impact to the pair, as all traders’ attention today is focused on the NFP report, which will be released during New York trades.

The NZD/USD pair regained its bid tone today in wake of increased interest to the risky assets. The spike of interest to higher-yielding instruments is mostly attributed to the announcement, coming from North Korea. Earlier today, North Korean leader Kim Jong-Un offered to stop nuclear testing, and also expressed the desire to meet with the US President as soon as possible. The increased prospects of peace in Korean Peninsula have triggered a wave of bids for higher-yielding assets, such as the Kiwi. However, the pair stalled its upside, as shadow of a global trade war and typical cautiousness ahead of the crucial data from the US labor market are limiting bullish rally of risky instruments. As it was mentioned before, today the US will publish important data from the labor market – NFP, which is the main market-moving event of this Friday.

Major events of the day:
UK Manufacturing Production – 11.30 (GMT +2
US Nonfarm Payrolls – 15.30 (GMT +2)
US Unemployment Rate – 15.30 (GMT +2)
Canada Employment Change – 15.30 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.2202 R. 1.2500
USDJPY S. 105.71 R. 106.55
GBPUSD S. 1.3702 R. 1.3964
USDCHF S. 0.9386 R. 0.9582
AUDUSD S. 0.7734 R. 0.7864
NZDUSD S. 0.7214 R. 0.7318
USDCAD S. 1.2813 R. 1.3003

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Tuesday, March 13th

The EUR/USD pair remains broadly offered this Tuesday on the back of attempts of the US dollar to regain control over the market. Seems that US bulls have finally found some support across the market after the disappointing US unemployment rate, which was released on Friday. However, further actions of the pair look limited, as investors refrain from placing aggressive bets ahead of the latest US consumer inflation figures, which will likely trigger volatile trades across the market, as they will be able to bring some hints on what to expect from the Fed this year. Also today, investors will pay attention secondary EU data reports, however, expected that the market won’t show any reaction on the EU data amid broad cautiousness ahead of the key event of this Tuesday.

The GBP/USD pair lost its positive traction in Asia, having faced resistance at the level of 1.3900. The main reason for pair’s reversal can be called increasing cautiousness in wake of busy data calendar. First, today the UK budget report hearing will take place, which will include updated economic growth and inflation forecasts for the kingdom, and will probably bring significant impact on the pound. Moreover, today investors are awaiting for important US inflation data, which expectedly will trigger additional volatile moves of the pair, as it will be able to indicate how aggressive policy the Fed will implement this year. Another negative factor for the pair can be called ongoing speculations regarding possible “hard” Brexit, which is limiting potential gains of the pound lately. Above-mentioned events will be the key driving factors for the pair and will determine its further direction.

The AUD/USD pair stalled its recent upside trend amid lack of any market-moving events on Monday. The pair started this week on a positive note, following Sunday’s reports, saying that Australia won’t be affected by the US metal tariffs. However, the pair has lost its bullish mood and stalled its upside rally amid lack of catalysts. Adding to this, widespread cautiousness ahead of important US CPI report and red numbers from the Australian economy exert additional pressure on the Aussie today, thus limiting pair’s further growth. In the day ahead, all markets’ attention will remain focused on the US inflation report, which will be able to set up pair’s further direction, but until then market sentiment will help the pair to form its near-term trajectory.

The USD/CAD pair keeps its positive tone this week, having bounced off 2-week lows, marked yesterday near the level of 1.2800. Seems that the US dollar have found support and now is trying to correct after mixed data from the US labor market, witnessed on Friday. Moreover, subdued dynamics of oil prices are negatively affecting positions of the commodity-linked Loonie, thus additionally contributing to the recovery of the pair. It is expected that in the next few hours the pair won’t surprise us with any sharp moves, as we are heading towards the US inflation data, which likely will indicate how aggressive the next steps of the Fed will be regarding its monetary policy. Besides the US consumer price index, investors will also pay attention to the speech of BoC Governor S.Poloz, which will also be able to bring some trading opportunities during the NA session.

Major events of the day:
UK Spring Forecast Statement – 13.30 (GMT +3)
US Core CPI – 15.30 (GMT +3)
BoC Governor S.Poloz’s Speech – 17.15 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.2268 R. 1.2378
USDJPY S. 105.89 R. 107.23
GBPUSD S. 1.3810 R. 1.3964
USDCHF S. 0.9429 R. 0.9535
AUDUSD S. 0.7831 R. 0.7899
NZDUSD S. 0.7246 R. 0.7346
USDCAD S. 1.2787 R. 1.2873

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Thursday, March 15th

The EUR/USD pair struggles to find direction this Thursday, trading in a tight range of 1.2365-85. Yesterday, the euro came under renewed pressure, following speech of the ECB President M.Draghi, where the head of the regulator showed concerns over the subdued performance of inflation, while saying that exchange rate of the euro could negatively affect inflation prospects. On the other side, on Wednesday the US published retail sales report, which came below market expectations, thus having exerted pressure on the US dollar, which in turn limited pair’s downside rally. Moreover, concerns over the potential global trade war, triggered by recent US President’s metal tariffs, may hurt greenback positions, as now investors are awaiting for the response from China. In the day ahead, the EU economic calendar won’t bring us anything important, while the US will release Philly Fed index, however, all traders’ attention remains focused on the EU inflation data, which will be available already tomorrow.

The USD/CHF pair tried to recover part of its yesterday’s losses this Thursday, backed by weak US retail sales data, which forced the greenback to retreat across the market. Adding to this, today markets are awaiting for SNB interest rate decision that stops investors from opening any important bets. It is widely expected that the Bank will keep its interest unchanged and won’t make any important changes to its monetary policy, as the Swiss regulator broadly repeats the policy of the ECB, which remains highly accommodative lately. Moreover, the latest Swiss macro data indicates a stable growth of the economy, which again shows that the SNB has no need to make any changes to the current monetary policy. Besides the SNB meeting, investors will also pay attention to Philly Fed manufacturing data, which will be released during the NA session.

The USD/JPY pair recovered its positive tone during the Asian session and returned to the area, located near the level of 106.00. However, the pair continues to remain under pressure this Thursday on the back of several bearish factors, which are dragging the pair into negative direction. Ongoing fears of global trade war, triggered by US President Donald Trump’s plan to impose tariffs on China, continue to fuel market’s interest to safe-haven assets, such as the yen. Moreover, seems that traders are still digesting yesterday’s weak US retail sales data, which also contribute to the pair’s decline today. However, slight recovery of the pair could be attributed to profit taking action after notable bearish rally of the pair, seen this week. On the data front, today the US will release several regional manufacturing indices, which will bring investors fresh trading opportunities during the NA session, but until then the pair will continue to trace broad market trend for any direction.

Bitcoin remains under pressure lately with no chances for recovery. Today the BTC/USD pair slipped below the level of 8000, which is the lowest level since mid-February. The main reason of negative sentiment, seen on the cryprtomarket, remain regulatory measures form Asian countries, with China “closing the door” on digital cash, banning any activity regarding cryptocurrencies within their borders. However, there were some additional developments around cryptocurrencies, which exerted extra pressure on the cryptomarket. According to the latest reports, search giant Google intends to ban all advertisements for cryptocurrencies and related content starting in June. Therefore, by the moment of writing the BTC/USD pair dropped to the level of 7883.80, while market capitalization of the world’s largest cryptocurrency was 133 billion US dollars, according to data from coinmarketcap.com.

Major events of the day:
SNB Interest Rate Decision – 11.30 (GMT +3)
Philadelphia Fed Manufacturing Index – 15.30 (GMT +3)
Canada ADP Nonfarm Employment Change – 15.30 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.2309 R. 1.2441
USDJPY S. 105.69 R. 107.05
GBPUSD S. 1.3891 R. 1.4031
USDCHF S. 0.9395 R. 0.9507
AUDUSD S. 0.7816 R. 0.7946
NZDUSD S. 0.7298 R. 0.7370
USDCAD S. 1.2895 R. 1.3005

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Friday, March 16th

The EUR/USD pair has finally recovered its positive tone, having bounced off its weekly lows, marked near the level of 1.2300. Seems that the US dollar has run out of stream, all amidst persistent concerns over a global trade war, sparked by recent US President D.Trump’s metal tariffs, thus allowing the pair to recover some pips this Friday. Moreover, Mr.Trump’s decision to fire H.R.McMaster as his national security adviser on Thursday also added some weakness to the US dollar. Today all traders’ eyes will remain glued to the EZ inflation report, while the US data will also be able to attract some attention during the NA session.

The GBP/USD pair corrected its positions higher to the level of 1.3950 in early Europe, however, remaining under bearish pressure. Ongoing demand for safety, backed by US President’s tariff plans and fears of “hard” Brexit, and additionally spurred by recent reshuffle of administrative staff of the White House, remain one of the key driving factors across the market this week, thus limiting any chances of the pound to gain any pips beyond the level of 1.4000. Moreover, it is expected that increased interest of investors to less risky assets will continue to dominate the market, as now all attention remains focused on the Fed and BoE meetings, where both regulators are expected to speak about their rate strategies. But today, the UK data calendar won’t bring us anything noteworthy, while the US will publish housing market data and JOLT’s jobs report, which likely will spark some volatility during the NA session.

The USD/JPY pair failed to hold its positions and again slipped below the level of 106.00 at the end of this week. The reason of pair’s weakness remains broad risk-off sentiment, triggered by US President D.Tump’s decision to remove National Security Adviser H.R.McMaster from his current positions. This big resignation has accelerated the demand for safe-haven assets, such as the yen. Moreover, the ongoing fears of a global trade war is another factor, which increase markets interest in less risky instruments lately. On the data front, today the US will publish data from labor and housing markets during the NA session, but widespread sentiment, caused by strong risk aversion, will continue to navigate the pair on Friday.

The NZD/USD pair is the biggest loser of this trading session, having refreshed its 8-day lows at 0.7241 spot. Today, the widespread trend of risk aversion remains the main driver across the market, thereby exerting notable pressure on the pair. According to the latest reports, the US President D.Trump decided to fire the US National Security Adviser H.R.McMaster. This and previous changes in inner circle of the US President had a significant impact on the risk appetite of the financial market. Moreover, it is expected that the better demand for safety will continue to exert influence on the pair ahead of the Fed and RBNZ monetary policy meetings due next week. Today market’s attention will remain focused on the US macro data, which will be able to bring some fresh trading opportunities during NY trades.

Major events of the day:
EU CPI – 12.00 (GMT +3)
US Building Permits – 15.30 (GMT +3)
US JOLTs Job Openings – 17.00 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.2245 R. 1.2413
USDJPY S. 105.54 R. 106.80
GBPUSD S. 1.3880 R. 1.4016
USDCHF S. 0.9402 R. 0.9574
AUDUSD S. 0.7735 R. 0.7915
NZDUSD S. 0.7226 R. 0.7358
USDCAD S. 1.2897 R. 1.3145

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Monday, March 19th

The EUR/USD pair follows broad market trend today, caused by the growth of the US dollar against its main competitors. According to investors’ expectations, the Fed is to increase its interest rate by 25 bps this Wednesday, which is the key market-moving theme today, thus forcing the pair to trade with a bearish bias at the start of this week. Moreover, taking into account upcoming events, divergence between the Fed and ECB also comes into play, as latest comments by ECB officials showed that the Bank would continue to maintain accommodative monetary policy, while EZ inflation growth pace continues to show disappointing results. Looking ahead, today the economic calendar won’t offer us anything noteworthy, so widespread market sentiment, caused by upbeat price dynamics of the US dollar, will continue to form pair’s further trajectory.

The GBP/USD pair keeps offered tone this Monday on the back of busy economic week ahead. Currently the pair is trading at 1.3923 level, having retreated from its intraday highs, marked at 1.3949, as cautiousness ahead of both regulators’ interest rate decisions negatively influences higher-yielding pound. Investors are awaiting that both Banks will adhere more hawkish policy tightening strategy this year, as both economies are showing pretty robust results lately. Moreover, tomorrow the UK will publish inflation data, which will additionally hint at how aggressive measures the BoE will apply to its monetary policy this year. However, today the economic calendar won’t bring us anything important, so the pair will continue to follow broad market trend this Monday.

The AUD/USD pair remains heavily offered at the start of this week, having lost more than two cents since last Thursday tops and refreshed its 3-month lows on the level of 0.7687. The main reason of pair’s retreat remains increased demand for the US currency, as investors are pricing in Fed rate hike, which is scheduled for this Wednesday. Adding to this, softer tone on the commodity market, especially around metals, such as gold and copper, also contributes to pair’s retreat. In absence of any important market-moving event from the US side, today the price dynamics of the US dollar will continue to navigate the pair during this trading session, however, investors will remain in anticipation of the RBA minutes, which will be published during the next Asia.

The USD/JPY pair started this week with on a negative note, despite better sentiments around the greenback. Seems that risk-off sentiment is still gripping the market, thus benefitting the yen, as safe-haven asset. Fears of a global trade war, triggered by D.Trump’s tariffs on steel and aluminum, which will be implemented on March 23rd , remain one of the key driving factors for the pair today. Moreover, it is expected that broad cautiousness will continue to influence the market in the next couple of days, as traders are awaiting for the Fed interest rate decision, which will take place this Wednesday. According to markets’ expectations, the regulator will increase its interest rate, however, investors will also closely watch for any comments regarding further Fed rate strategy. On the data front, today the US data calendar will remain silent, therefore, the pair will continue to follow broad market sentiment during today trades.

Major events of the day:
None

Support and resistance levels for the major currency pairs:
EURUSD S. 1.2218 R. 1.2370
USDJPY S. 105.21 R. 106.73
GBPUSD S. 1.3843 R. 1.4029
USDCHF S. 0.9454 R. 0.9578
AUDUSD S. 0.7645 R. 0.7835
NZDUSD S. 0.7160 R. 0.7306
USDCAD S. 1.3025 R. 1.3133

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Wednesday, March 21st

The EUR/USD pair corrects higher this Wednesday after yesterday’s drawdown, triggered by bullish tone of the US dollar and disappointing German Zew surveys. Today it is all about the Fed meeting. It is widely expected that the Fed will increase its interest rate by 0.25%, so investors are more interested in comments of the head of the regulator. The market could witness notable volatility if Mr.Powell revises rate dot plot to four for 2018. Also, markets will await for any changes in long-term forecast of the Bank and clarity regarding impact of trade war on the US economy. Besides the Fed interest decision, the US will also publish today the data from the housing market, however, it is expected that markets won’t pay any attention to it.

The GBP/USD pair recovered some ground this Wednesday, keeping its positions above the level of 1.4000. Yesterday the pair received notable bearish impetus on the back of weaker-than-expected UK CPI data, while easing part of its gains, backed by Brexit negotiation progress. However, now all attention turns towards the Fed and BoE interest rates decisions. According to market expectations, the Fed will increase its interest rate today, so investors are awaiting for detailed information regarding Fed further rate strategy, which will be able to shake up the market. On the other hand, despite weak UK inflation data, the BoE is still expected keep its intention to lift the rate in May, as latest economic data of the UK showed positive results and the UK/EU have finally made a progress on Brexit terms. Today investors will look forward for data from the UK labor and the US housing markets, however, the key event of this Wednesday will be the Fed meeting.

The NZD/USD pair has stalled its downside rally, having faced resistance near the level of 0.7170, which is the lowest level since mid-October, as the market is turning cautious ahead the Fed and RBNZ meetings. In general, markets remain confident that the Fed will increase its interest rate by 25 bps, while awaiting for any clarity on Fed plans regarding rate hikes this year. On the other hand, the RBNZ will likely keep status quo, while any comments regarding further economic projections will be able to bring some additional impetus later ahead. Besides interest rates decisions, investors will also pay attention to data from the US housing market, however, reaction on the US data will likely be limited.

The USD/CAD pair came under strong bearish pressure during quiet Asian trades, having dropped more than 60 pips and refreshed its weekly lows at 1.3011 spot. The drawdown of the pair is mainly attributed to developments in NAFTA talks. According to latest news, the US decided to withdraw their auto-content proposal that all vehicles made in Canada and Mexico for export to the US should contain at least 50% of details produced in the US. The removal of the key issue could lead to a reconsideration of North American Free Trade Agreement. Adding to this, positive tone around oil prices also provides support to the commodity-linked Loonie in the middle of this week, thus additionally weighing the pair. Looking ahead, today all investors’ attention will remain glued to the Fed interest rate decision, which is scheduled for the second half of the NA session, but until then NAFTA news will continue to drive the pair.

Major events of the day:
UK Average Earnings Index +Bonus – 12.30 (GMT +3)
UK Claimant Count Change – 12.30 (GMT +3)
US Existing Home Sales – 17.00 (GMT +3)
US Crude Oil Inventories – 17.30 (GMT +3)
Fed Interest Rate Decision – 21.00 (GMT +3)
RBNZ Interest Rate Decision – 23.00 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.2163 R. 1.2393
USDJPY S. 105.67 R. 107.03
GBPUSD S. 1.3931 R. 1.4099
USDCHF S. 0.9476 R. 0.9612
AUDUSD S. 0.7651 R. 0.7735
NZDUSD S. 0.7130 R. 0.7274
USDCAD S. 1.3024 R. 1.3126

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Thursday, March 22nd

The EUR/USD pair follows broad market trend today, backed by retreat of the US dollar against its major rivals, while refreshing its weekly highs at 1.2388 spot. Broad sell off of the US dollar is mainly attributed to not enough hawkish outcome of the Fed meeting. As it was widely expected the regulator increased its interest rate by 25 bps up to the level of 1.75%, however, investors by that moment had already managed to fully price in this decision of the Fed, therefore the reaction on it was limited. Markets were expecting the revision of “dot plot”, which would imply an additional rate hike this year, however, it didn’t happen. Nevertheless, the regulator did the revision of its plans regarding the rate, indicating 3 rate hikes next year, instead of 2 previously planned, but the market payed little of the attention to these comments. In general, the outcome of the FOMC meeting appeared hawkish, where the regulator indicated confident growth of the inflation, however, noting that there is no evidence of the acceleration of its growth. On the data front, today the economic calendar won’t bring us anything noteworthy, so the pair will continue to follow widespread market sentiments during this session.

The GBP/USD pair extends it bullish trend, having refreshed its 3-week highs at 1.4178 in early Europe, in wake of broad sell off of the US dollar. Yesterday, during the NA session the Fed increased its interest rate up to 1.75% level. However, the greenback failed to benefit from the hawkish decision of the committee, as investors were expecting a hawkish revision of rate hike projection for this year, which eventually remained unchanged. On other the hand, today we will witness another important economic event – BoE interest rate decision, which will take place later during the European trading session. It is expected that the UK regulator will keep its interest rate at the same level, while further economic projections, taking into account streak of positive UK economic results and the progress in Brexit negotiations, will affect positions of the pound. Besides the BoE meeting, the UK will release retail sales numbers, which will also have some impact on the pair during the European trades.

The NZD/USD pair was consolidating its positions in 0.7225-45 range during Asia, cooling off after eventful and volatile session. Yesterday in NY afternoon, meetings of both regulators took place, which forced the pair to bounce off its 3-month lows, marked on the level of 0.7153. As it was widely expected, the Fed increased its rate from 1.5 to 1.75%. However, markets reacted negatively on the outcome of the FOMC meeting, as the head of the regulator left its rate hike projection at the same level, while the market was expecting more aggressive actions. On the other hand, the RBNZ meeting was non-event. The regulator remained positive on the NZ economic growth outlook, however, reiterating that the Bank will continue to maintain accommodative monetary policy. Today we will witness pretty quiet session ahead, as the US will release only secondary data reports, so investors will continue to digest recent economic events, thus determining pair’s direction this Thursday.

The AUD/USD pair failed to keep its positive tone, triggered by broad weakness of the greenback, and eased some part of its yesterday’s gains. On Wednesday, the greenback came under massive selling pressure, following not enough hawkish outcome of the Fed meeting. Although the Fed increased its interest rate for 25 bps, the greenback turned negative, as investors were awaiting that the Fed would indicate an additional rate hike this year over the already expected three, but the committee left their “dot plot” unchanged at three rate hikes for 2018. However, the pair failed to keep its positions and eased some part of its gains on the back of disappointing Australia’s employment change numbers. In the day ahead, nothing important is scheduled in the economic calendar for the pair, so broad market sentiments, caused by recent economic events, will remain the main driver for the pair today.

Major events of the day:
Prelim. German Manufacturing PMI – 11.30 (GMT +3)
German Ifo Business Climate – 12.00 (GMT +3)
UK Retail Sales – 12.30 (GMT +3)
BoE Interest Rate Decision – 15.00 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.2163 R. 1.2393
USDJPY S. 105.67 R. 107.03
GBPUSD S. 1.3931 R. 1.4099
USDCHF S. 0.9476 R. 0.9612
AUDUSD S. 0.7651 R. 0.7735
NZDUSD S. 0.7130 R. 0.7274
USDCAD S. 1.3024 R. 1.3126

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Friday, March 23rd

The EUR/USD pair has reverted yesterday’s correction from its weekly highs and is now trading back above the level of 1.2300. One of the key driving factors for the pair remains ongoing weakness of the greenback, as markets are still digesting not enough hawkish outcome of the Fed meeting, where the regulator left its rate hike projection for this year unchanged that weighed the US currency across the market. Moreover, significant drawdown of the US dollar in the pair with the yen in wake of strong risk-off sentiment, triggered by escalation of a trade war between the US and China, also contributes to EUR/USD’s positive tone at the end of this week. Looking ahead, today the EZ data calendar won’t bring us anything noteworthy, so investors will focus their attention on the releases, prepared by the US economy. However, further developments around US-China trade war will also be able to influence pair’s direction.

The USD/JPY pair came under massive selling pressure in early Asia, having broken through the level of 105.00. The main reason of pair’s retreat remains strong risk aversion, triggered by escalation of a trade war between the US and China. According to the latest reports, the US President D.Trump signed a presidential memorandum, introducing new customs duties against China. Also, it is worth noting that Mr. Trump exempted Canada, Mexico, EU, Australia and other major business partners from tariffs that means that China remains nearly the only country, affected by US tariffs. However, China’s officials have already managed to respond to tariff threat, calling the US to reconsider their action, while saying that China hopes to avoid a trade war, but is not afraid of participating in it. Moreover, China’s Commerce Ministry has already started the preparation of retaliatory measures to balance US tariffs against Chinese steel and aluminum products. On the data front, today the US will release durable goods orders and data from the housing market, which will be able to spark some volatility at the end of this trading week.

The GBP/USD pair trades with a slight bullish bias this Friday, recovering its positions after yesterday’s drawdown. On Thursday, the BoE meeting took place, where the regulator left its interest rate unchanged at 0.5% level. The MPC members voted 7 against 2 to keep the rate at the same level, where 2 of the MPC members voted to increase the rate. Adding to this, the Bank continues to remain positive on wage growth progress in the UK. On the other hand, the regulator didn’t provide markets with any comments on progress made in Brexit negotiations, while again stressing that Brexit continues to be the source of uncertainty regarding economic outlook. Summing up, we can say that the overall tone of the BoE looked quite hawkish, which positively affects the confidence of the market that rate hike in May is still in play. However, traders negatively reacted on less informative outcome of the meeting, but the retreat was short-lived and the pair managed to recover its positive tone. Today the UK data calendar will remain silent, while the US economy will release slew of macroeconomic data, which will bring investors some trading opportunities later during the NA session.

The AUD/USD pair remains positive at the end of this trading week on the back of subdued dynamics of the US dollar. However, it is expected that bullish tone of the pair won’t last long, as strong risk aversion grips the market today. Recent market sentiments were caused by the escalation of a trade war between the US and China. Adding to this, mildly bearish tone on the commodity market, especially around copper prices, also limits pair’s further gains. In the day ahead, the US will publish bunch of important data reports during the NA session, however, it is expected that market’s attention will remain focused on developments around US-China trade war.

Major events of the day:
US Core Durable Goods Orders – 15.30 (GMT +3)
Canada Core CPI – 15.30 (GMT +3)
Canada Core Retail Sales – 15.30 (GMT +3)
US New Home Sales – 17.00 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.2221 R. 1.2427
USDJPY S. 104.70 R. 106.36
GBPUSD S. 1.3988 R. 1.4268
USDCHF S. 0.9433 R. 0.9543
AUDUSD S. 0.7624 R. 0.7818
NZDUSD S. 0.7169 R. 0.7281
USDCAD S. 1.2786 R. 1.3024

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Monday, March 26th

The EUR/USD pair extends its Friday’s positive trend on the back of broad retreat of the US dollar. The main reason of greenback’s weakness could be called escalation of the trade conflict between the US and China after the US President introduced new customs duties against China. However, now we are witnessing some decline in market speculations about the trade war, as investors are awaiting for any progress in US-China negotiations regarding trade conditions. In absence of any important data releases, scheduled for this Monday, the pair will continue to trace market sentiment, caused by recent world events and the US dollar dynamics.

The GBP/USD pair follows broad market trend this Monday, caused by easing risk aversion. Seems that fears of a trade war between US-China have eased somewhat, thus forcing investors to pay attention to more risky assets, such as the pound. Moreover, convergence between the Fed and BoE monetary policies after tow regulators’ meetings, where both Banks showed hawkish tone, also provides some support to the pair lately. In the day ahead, the economic calendar won’t bring us anything important, so traders will remain in anticipation of further developments regarding the US-China trade conflict.

The USD/JPY pair opened this week in the vicinity of 4-month lows, which are located below the level of 105.00. However, the pair managed to correct slightly higher on the back of profit taking actions after aggressive downside rally, seen in the second half of the previous week. Recall, on Thursday US President D.Trump signed a presidential memorandum, introducing new customs duties against China, thus adding extra fuel to the fire regarding ongoing fears of a trade war. Nevertheless, it is expected that the pair will continue to remain under bearish control, as risk-off sentiment is still gripping the market, while the US dollar continues to showing subdued dynamics lately. Today we have a rather quiet session due to the absence of any important economic releases, so broad market sentiment will remain the key navigator for the pair during this trading session.

The NZD/USD remains positive today, having refreshed its 7-day highs at 0.7285 spot, on the back of cooling off speculations around US-China trade war. Seems that the dust around trade conflict between the US and China has started to settle down, thus decreasing demand for safety. Moreover, positive NZ trade balance data, published in early Asia, also contributes to pair’s positive tone at the start of this week. However, upside trend of the pair looks limited lately, as markets remain cautious, awaiting for another round of the US-China tariff talks. Looking ahead, nothing important is scheduled in the economic calendar from both sides, so widespread market trend will help the pair to form its near-term trajectory at the start of this week.

Major events of the day:
None

Support and resistance levels for the major currency pairs:
EURUSD S. 1.2265 R. 1.2417
USDJPY S. 104.18 R. 105.60
GBPUSD S. 1.4040 R. 1.4216
USDCHF S. 0.9418 R. 0.9520
AUDUSD S. 0.7651 R. 0.7765
NZDUSD S. 0.7162 R. 0.7308
USDCAD S. 1.2771 R. 1.2999

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Tuesday, March 27th

The EUR/USD pair shows positive results for the third consecutive session, having tested its 5-week highs, located on the level of 1.2476. The main reason of pair’s positive trend could be called subdued dynamics of the US dollar, caused by ongoing concerns over a potential US-China trade war. However, it seems that tensions between the US and China eased somewhat, as both sides have begun talks on how to avoid trade conflict. On the other hand, it is expected that the pair will keep its positive tone today, as the euro benefits from persisting risk-off environment, which was additionally boosted by scandal, involving Japanese Prime Minister Shinzo Abe. Today we will have another quiet trading session, as the economic calendar will remain silent, so the US dollar dynamics and risk sentiment will continue remain the key determinants for the pair this Tuesday.

The USD/JPY pair extends its yesterday’s upside correction, having refreshed its 3-day highs on the level of 105.75, in wake of widespread risk-on sentiment recovery. The return in risk appetite across the market is mainly explained by fading concerns over the US-China trade war, as, according to the latest reports, two world’s biggest economies are ready to discuss trade terms. However, investors’ interest to risky assets may appear limited, as today the Japanese government resumes hearing testimony on the government’s land sale scandal, where PM Shinzo Abe was involved. On the data front, today we will witness another quiet session, as only US consumer confidence data will be released during the NA session, so swings in risk appetite will set up pair’s next direction.

The GBP/USD pair continues to gain points for the third session in a row, despite strong risk aversion, keeping its positions in the region of its 3-week tops, marked at 1.4244 spot a day before. The main reason of pair’s positive tone could be called the convergence of the Fed and BoE monetary policies, as both regulators are planning to increase their interest rates this year. On the other hand, persisting risk-off environment, additionally underpinned by Japanese land sale scandal, limits pair’s upside trend somewhat. Today the economic calendar will remain silent, leaving the pair at the mercy of widespread trend, caused by investors’ interest to risky assets.

The AUD/USD pair failed to keep its bullish mood and retreated from its 3-day tops, marked at 0.7757 earlier this session. However, it is expected that the retreat will be short-lived and the pair will regain its positive tone, as recovery of investors’ interest to higher-yielding assets, triggered by easing tensions between the US and China, is positively affecting the pair. Moreover, bullish tone on the commodity market, especially around copper and gold prices, also provides support to Aussie this Tuesday. However, some cautiousness may persist on the market today, as Japanese land sale scandal, where Japanese officials were involved, comes to the fore, thus weighing the pair. Looking ahead, nothing much is scheduled in the economic calendar for this trading session, so widespread market trend, caused by risk sentiment, will remain the key navigator for the pair on Tuesday.

Major events of the day:
US CB Consumer Confidence – 17.00 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.2305 R. 1.2533
USDJPY S. 104.28 R. 106.02
GBPUSD S. 1.4083 R. 1.4317
USDCHF S. 0.9403 R. 0.9513
AUDUSD S. 0.7672 R. 0.7788
NZDUSD S. 0.7201 R. 0.7347
USDCAD S. 1.2785 R. 1.2951

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Thursday, March 29th

The EUR/USD pair tried to recover its positions during the Asian trading session after two days at a loss. The latest decline of the pair is mainly attributed to the growth of the US dollar against its major rivals on the back of easing fears of a trade war between the US and China, as sides agreed to discuss further trade terms to avoid further conflict. However, the pair met support on the level of 1.2300 in early Asia and recovered some part of its losses, as investors took some profits off the table, thus pausing greenback upside rally. In the meantime, markets remain in anticipation of the data release from the German labor market, which will be the last market-moving event for the pair ahead of Easter holiday-break.

The GBP/USD pair extends its bearish trend for the third day in a row, paying little attention to overnight downside correction of the greenback. Recent bearish rally of the pair could be associated with the broad demand for the US dollar due to easing fears of a trade war between the US and China. However, recovery in risk-on sentiment across the market may offer some support to the higher-yielding pound. In the day ahead, the UK will release important GDP report, which will be the key event of this day for the pair, while the US economic calendar will remain silent ahead of holidays.

The dollar/yen pair corrects lower this Thursday from its 2-week highs, marked in the vicinity of 107.00. Yesterday’s bullish rally of the pair could be explained by renewed optimism around the US dollar, underpinned by easing tensions between the US and China, as both sides are ready to negotiate further trade terms. Moreover, bloc of positive US macro data, featuring GDP numbers and data from the housing market, also contributed to greenback’s positive tone. However, the pair failed to keep its yesterday’s gains and retreated to the area of 106.50, as investors took some profits off the table after notable bullish rally of the pair, witnessed earlier this week. In absence of any relevant data reports from the US economy, the pair will continue to follow the US dollar price dynamics ahead of Easter holidays.

The AUD/USD pair follows broad market trend and corrects higher after recent downside rally. In Asia, the pair bounced off its 4-month lows, marked on the level of 0.7643, and now is trading with a mild bearish bias, as investors are locking some profits on USD. Recent drawdown of the pair could be explained by increased demand for the US dollar, as the US and China agreed to discuss the situation to avoid further trade war. However, persisting bearish sentiment on the commodity market, especially of the gold and copper, may limit further recovery of the pair. On the data front, nothing important is left in the data calendar for this week, so widespread market sentiment will remain the key navigator for the pair ahead of Easter weekend.

Major events of the day:
German Unemployment Change – 11.55 (GMT +3)
UK GDP – 11.30 (GMT +3
Canada GDP – 15.30 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.2220 R. 1.2464
USDJPY S. 104.68 R. 108.08
GBPUSD S. 1.3985 R. 1.4245
USDCHF S. 0.9410 R. 0.9654
AUDUSD S. 0.7624 R. 0.7722
NZDUSD S. 0.7158 R. 0.7300
USDCAD S. 1.2834 R. 1.2976

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Tuesday, April 3rd

The EUR/USD pair follows broad market trend this Tuesday and corrected above the level of 1.2300 after yesterday’s drawdown to the level of 1.2282. The renewed retreat of the US dollar, which is explained by escalation of the conflict between the US and China, remains the main theme across the market, allowing the pair to recover its positions. Moreover, broad risk aversion is another positive factor, which supports the pair somewhat this Tuesday. Looking ahead, today the EU calendar will bring us slew of local PMI reports, while the US will offer investors several Fedspeaks, which expectedly won’t have significant effect on the pair, so widespread market trend will remain as the key driver for pair after Easter holiday.

The GBP/USD pair managed to protect its positions above its psychological support of 1.4000 during long Easter weekend and now continues to trade with a bullish bias. The main reason of pair’s bullish tone could be called broad weakness of the US dollar, triggered by increasing fears of a potential trade war between the US and China after China retaliated with tariffs on a wide array of American-made goods. However, further upside of the pair looks limited, as markets give preference to more safety assets in conditions of widespread risk-off sentiment, boosted by the same fears of a trade war. On the data front, today traders’ attention will remain glued to the UK manufacturing data, which will help the pair to form its near-term trajectory this Tuesday on a par with broad market trend.

The AUD/USD pair caught fresh wave of bids in Asia, despite uninformative outcome of the RBA meeting. Earlier this session, the RBA meeting took place, where the regulator matched market’s expectations and left its interest rate unchanged at 1.5%. Moreover, the Bank delivered the same comments, as we heard after the previous meeting, saying that the inflation is likely to remain low for some time, therefore the Bank would continue to adhere to the accommodative monetary policy. As a result, investors mostly ignored the outcome of the RBA meeting, so broad market sentiment, backed by subdued US dollar dynamics, was the main driving factor for the pair during this Asia, allowing it to recover from the area of its 4-month lows, marked on the level of 0.7650 in the second half of the last week. However, further upside of the pair looks unlikely, as renewed risk aversion, triggered by escalation of the US-China conflict, may limit further recovery of higher-yielding Aussie. In absence of any important economic releases this Tuesday the widespread trend will remain the key driver for the pair.

The USD/JPY pair corrected higher to the level of 106.00 this morning, having recovered its positions after yesterday’s drawdown. Lately, market attention remains turned to the ongoing conflict between the US and China, which was recently boosted by China’s response with a set of tariffs on US goods. This development sparked fresh demand for safety, as it brings us closer to a potential trade war, thus providing support to the Japanese yen. Moreover, risk-off sentiment could accelerate in the week ahead, as we are heading towards US payrolls, which will be released this Friday. However, today the US economic calendar won’t bring us anything noteworthy, so the widespread trend will continue to navigate the pair during this trading session.

Major events of the day:
German Manufacturing PMI – 10.55 (GMT +3)
Manufacturing PMI – 11.30 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.2245 R. 1.2373
USDJPY S. 105.20 R. 106.78
GBPUSD S. 1.3986 R. 1.4106
USDCHF S. 0.9503 R. 0.9589
AUDUSD S. 0.7622 R. 0.7714
NZDUSD S. 0.7182 R. 0.7256
USDCAD S. 1.2825 R. 1.2987

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Thursday, April 5th

The EUR/USD pair remains offered this Thursday, having refreshed its 2-week lows at 1.2249 spot. The main reason of pair’s recent retreat could be called ongoing buying interest around the US dollar on the back of easing turmoil regarding trade conflict between the US and China. Moreover, the downside move of the pair was additionally underpinned by a swing in risk sentiment that weighed on the common currency this Thursday. On the data front, today both economies won’t bring us anything interesting, so markets will remain in anticipation of Friday’s NFP risk event, but until then widespread trend, backed by the US dollar price dynamics and risk sentiment, will be the key navigator for the pair.

The GBP/USD pair lost its positive tone this Thursday after three days at a profit. Earlier in the Asian session, the pair faced resistance near the level of 1.4100 and retreated to the area of 1.4050 on the back of ongoing recovery of the US dollar, backed by fading market talks regarding the US-China trade spat. On the other hand, slightly improved risk appetite could provide the pound with some support in the day ahead. However, the recovery of risk sentiment is expected to be short-leaved, as we are heading towards the release of Non-Farm Payrolls, which is scheduled for this Friday. But today traders’ attention will remain focused to the UK’s Services PMI due for release during the European session, while the US calendar will remain silent, offering markets only secondary data reports.

The AUD/USD pair failed to keep its upside trend and eased part of its yesterday’s gains, having retreated below the level of 0.7700, despite several supportive factors. Seems that bulls mostly ignored positive Australia’s retail sales numbers, released earlier during this session, as well as recovery of risk sentiment, offering no support to the Australian currency. The main reason of pair’s decline could be called ongoing recovery of the US dollar, which forced the pair to change its direction in early Asia. Moreover, weaker gold and copper prices additionally weighed on the commodity-linked Aussie this Thursday. In the day ahead, the US data calendar won’t offer markets anything interesting, leaving the pair at the mercy of widespread sentiment, which will help the pair to form its short-term trajectory this Thursday.

The USD/JPY pair keeps its bullish tone for the third consecutive session, having tested the resistance level of 107.00. Today the recovery of risk appetite remains the key theme across the market, which was caused by easing talks over the US-China conflict, while sending the pair to the region of its weekly highs, marked on the level of 107.00. Adding to this, positive US dollar price dynamics also contributes to pair’s upside this Thursday. However, further recovery of risk-on sentiment looks fragile, as investors are looking forward to important data from the US labor market, which will be released on Friday. However, today the economic data calendar won’t bring us anything noteworthy, so broad market trend will remain as the key determinant for the pair this Thursday.

Major events of the day:
UK Services PMI – 11.30 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.2225 R. 1.2341
USDJPY S. 105.67 R. 107.39
GBPUSD S. 1.3979 R. 1.4145
USDCHF S. 0.9530 R. 0.9650
AUDUSD S. 0.7640 R. 0.7758
NZDUSD S. 0.7230 R. 0.7348
USDCAD S. 1.2699 R. 1.2879

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Friday, April 6th

The EUR/USD pair trades with a bearish tone this Friday, staying in the region of its monthly lows, marked at 1.2218 spot a day before. The main reason of pair’s recent retreat could be called improved demand for the US dollar. However, further downside trend of the pair looks limited on the back of escalation of the US-China trade conflict after US President D.Trump’s threats to impose additional tariffs on Chinese imports. However, Mr.Trump also noted that he is still willing to meet with China at the negotiating table. Most of market participants believe that the aggressive behavior from the US side is nothing but a pre-negotiation tactics, which could potentially lead to a better trade terms. Today all traders’ eyes will remain glued to the key risky event of this Friday – release of the NFP report, but until then it is expected that the market will continue to keep cautious tone.

The GBP/USD pair remains pressured in the second half of this week, keeping its positions near its psychological level of 1.4000. The main reason of pair’s recent decline remains reignited risk-off sentiment, which was triggered by D.Trump’s retaliatory tariffs on Chinese-made goods, thus boosting fears of a potential trade war between the two world’s largest economies. Adding to this, slew of disappointing UK PMIs, witnessed earlier this week, are another bearish factor for the pound, thus adding some extra pressure on the pair this Friday. On the data front, today the BoE Governor M.Carney will deliver his speech, while the US will release key data from the labor market, which both will be able to set up pair’s further direction during the NA session.

The USD/JPY pair was trading back and forth within the 107.00-45 range during this Asia, struggling to find a direction. Earlier today the pair received notable bearish impetus, having tested the level of 107.00, on the back of intensifying fears of a trade war between the US and China. According to the latest news headlines, the President’s administration made the announcement, that Donald Trump is considering additional tariffs against China, accusing it of unfairly obtaining American intellectual property. However, the pair managed to regain its bid tone and recovered some part of its losses, as US bulls are not ready to give up yet. Meanwhile, it is expected that the pair will remain under pressure during the final trading session of the week on the back of improved demand for safety, which is additionally underpinned by upcoming risky NFP data. Besides the US employment report, investors will also pay attention to Fed Chair J.Powell’s speech, which is expected in NA afternoon.

The NZD/USD pair trades with a bearish bias for the second day in a row, having refreshed its intraday lows at 0.7255 spot, as the market witnessed another swing in risk sentiment. The renewed demand for safety become one of the main drivers in Asian due to the announcement of the White House, saying that Mr.Trump is seeking additional tariffs against China. This news has reignited market’s fears of a potential trade war between the US and China, thus weighing on the high-yielding Kiwi. Moreover, softer tone on the commodity market, especially around oil prices, also contributes to pair’s decline lately. In the day ahead, all traders’ attention will remain glued to the Non-Farm Payrolls report, which will be able to spark some volatility during the NA session.

Major events of the day:
US Nonfarm Payrolls – 15.30 (GMT +3)
US Unemployment Rate – 15.30 (GMT +3)
Canada Employment Change – 15.30 (GMT +3)
Canada Ivey PMI – 17.00 (GMT +3)
BoE Governor’s M.Carney Speech – 18.15 (GMT +3)
Fed Chair J.Powell’s Speech – 20.30 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.2177 R. 1.2321
USDJPY S. 106.40 R. 107.98
GBPUSD S. 1.3891 R. 1.4153
USDCHF S. 0.9581 R. 0.9665
AUDUSD S. 0.7643 R. 0.7747
NZDUSD S. 0.7223 R. 0.7345
USDCAD S. 1.2705 R. 1.2829

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Monday, April 9th

The EUR/USD pair struggles to find a direction this Monday, trading within the range of 1.2265-85, while failing to benefit from the decline of the US dollar. The broad sell-off of the US dollar is mostly explained by Friday’s NFP numbers, which came below market expectations. Moreover, subsequent speech of J.Powell also failed to provide the dollar with any support, as the head of the Bank reiterated all the same that we heard before. On the other hand, easing concerns over a US-China trade war give some respite to markets today, thus boosting risk appetite among investors, which negatively affects the common currency. The next risky event for the pair will be the release of the FOMC minutes, which is scheduled for Wednesday, but today the economic calendar won’t bring us anything important, leaving the pair at the mercy of broad market sentiment and the US dollar price dynamics.

The GBP/USD pair remains positive today, having refreshed its 8-day highs above the level of 1.4100, on the back of several bullish factors. First, ongoing sell-off of the US dollar, triggered by weaker-then-expected US NFP numbers and unemployment rate, continues to dominate the market this Monday, thus accelerating pair’s upside rally. Moreover, improved risk-on sentiment on the back of easing market speculations regarding a potential US-China trade war also supports the higher-yielding pound at the beginning of this trading week. In the day ahead, nothing important is scheduled in the data calendar for this Monday, so broad market trend will remain the key determinant during this trading session.

The NZD/USD pair remains the top gainer of this Asia, having broken through the level of 0.7300. The main reason of pair’s recent upside rally could be called broad weakness of the US dollar, following disappointing NFP numbers, released at the end of the last week. Adding to this, returned risk appetite amid lack of any important data releases this session ahead is another factor, which drives the pair in the northward direction. However, further improvement of risk-on sentiment could be limited, as investors are still awaiting for Chinese respond on the latest D.Trump’s tariffs. Looking ahead, today the pair will continue to follow broad market trend, backed by the US dollar price dynamics, as economic calendar won’t offer us anything noteworthy.

The USD/JPY pair trades with a mild bullish bias at the start of this trading week, getting closer to the level of 107, despite broad sell-off of the US dollar. It seems that interest for risky assets has returned to the market on the back of easing concerns over a US-China trade war, thus lending some pressure on the safe-haven yen. However, further bullish dynamics of the pair looks limited, as broad weakness of the US dollar, caused by weak Friday’s data from the US labor market, remains one of the key driving factors across the market. Today widespread trend and the US dollar price dynamics will continue to determine pair’s further direction, as the US hasn’t prepared anything important for this Monday.

Major events of the day:
None

Support and resistance levels for the major currency pairs:
EURUSD S. 1.2185 R. 1.2337
USDJPY S. 106.36 R. 107.72
GBPUSD S. 1.3935 R. 1.4181
USDCHF S. 0.9534 R. 0.9676
AUDUSD S. 0.7634 R. 0.7718
NZDUSD S. 0.7222 R. 0.7306
USDCAD S. 1.2701 R. 1.2833

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Tuesday, April 10th

The EUR/USD pair remains directionless today, consolidating yesterday’s gains in the region of its 4-day highs, marked at 1.2330 spot. Yesterday the pair managed to break through the level of 1.2300 on the back of broad weakness of the US dollar, as Friday’s NFP was still weighing the greenback. However, the pair stalled its upside rally, as broad risk appetite came to the fore today following recent comments of the Chinese President, where the head of government urged the US for a dialog, pledging to strengthen intellectual property rights that was one of Mr.Trump’s main complaints. Also Mr.Xi was talking about widening access to market and expanding imports, which significantly weakened market concerns of a US-China trade war, while lending some pressure on the common currency. In the data space, today the economic calendar will bring us only the US PPI report, so broad market trend will remain as the key determinant for the pair this Tuesday.

The AUD/USD pair performed notable bullish rally in Asia, having refreshed its 2-week highs on the level of 0.7738. On Tuesday, the market witnessed another wave of risk-on sentiment after much-awaited China’s President Xi Jinping’s speech, where he showed intension to use softer approach in resolving the US-China conflict to avoid a potential trade war. Taking into account recent developments around the US-China conflict, which have eased markets talks of a trade war, the pair mostly ignored weak data from the Australian economy and kept its bullish tone. In the day ahead, the US will release PPI report, while markets will continue to digest recent comments of China’s President, thus forming further market trend.

The USD/JPY pair trades with a bullish tone, keeping its positions above the level of 107.00. Today improved risk appetite remains the key driving theme across the market, as China’s President has finally delivered his comments on the US-China conflict. According to Mr.Xi’s statement, China is not a supporter of further aggravation of the trade conflict, therefore the Chinese government will strive to create a multilateral trading system, as well as free trade terms. These comments have reduced the odds of further escalation of a trade war and lifted appetite for risky assets, thus sending the yen lower against its major rivals. Looking ahead, nothing much is scheduled in the data calendar for this Tuesday, so market participants will continue to digest recent developments surrounding the US-China trade conflict.

The NZD/USD pair follows widespread trend this Tuesday, which was underpinned by increased risk appetite across the market. The pair continues to trade at a profit for the third day in a row, having refreshed its monthly highs on the level of 0.7340, following recent comments of China’s President Xi Jinping, who showed soft stance on the US-China trade angst. Earlier in Asia, President Xi Jinping showed his alternative vision of further trade relationship with the US, urging for a dialog rather than confrontation and trade restrictions. These comments from Chinese side have significantly eased fears of a potential trade war between the US and China, thus boosting the demand for higher-yielding assets, such as the Kiwi. Today only the US PPI report is due for release, so better demand for risky assets will continue to form pair’s further trajectory during this trading session.

Major events of the day:
US PPI – 15.30 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.2233 R. 1.2373
USDJPY S. 106.26 R. 107.44
GBPUSD S. 1.4038 R. 1.4210
USDCHF S. 0.9528 R. 0.9626
AUDUSD S. 0.7629 R. 0.7745
NZDUSD S. 0.7232 R. 0.7362
USDCAD S. 1.2601 R. 1.2865

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Wednesday, April 11th

The EUR/USD pair follows broad market trend, advancing for the fourth consecutive session so far on Wednesday, while having refreshed its 2-week highs at 1.2385 spot. The main reason of pair’s recent upside rally could be called ongoing sell-off of the greenback, as US bulls are still unable to recover after disappointing data from the US labor market, seen on Friday. Moreover, yesterday the common currency received additional supportive impetus following hawkish comments of ECB’s board member E.Nowotny, who suggested ECB to end up asset buys by the end of this year. In the day ahead, investors will remain in anticipation of ECB President’s speech, the US core CPI data and FOMC meeting minutes, which will be able to set up pair’s further direction this Wednesday.

The GBP/USD pair is trading at a profit for the fourth consecutive day, having refreshed its 2-week highs at 1.4215 level this Wednesday. Seems that broad weakness of the US dollar is still griping the market, remaining the main driving factor for the pair. Moreover, recent hawkish comments from MPC member Ian McCafferty, who offered not to delay raising interest rates amid the strong pickup in the world economy, also helped the pair to keep its bullish momentum. Today we have pretty busy trading session ahead, as the UK will offer us manufacturing production data, while the US have prepared for today the US inflation figures and the Fed minutes, which will expectedly have significant impact on the pair, thus determining its further direction.

The AUD/USD pair failed to extend its bullish rally and eased part of its gains, after testing 3-week highs on the level of 0.7769. The main driver for the pair remains easing market interest to higher-yielding instruments, as dust around China’s President Mr.Xi’s speech has been settling down. Adding to this, red numbers of Chinese inflation also negatively affected risk-on sentiment, forcing the pair to retreat from its recent tops. And even hawkish comments from the RBA Governor Ph.Lowe did little to support the pair during the Asian session. However, further downside trend of the pair looks limited on the back of ongoing sell-off of the greenback, which was additionally underpinned by yesterday’s disappointing US PPI report. Looking ahead, today traders’ attention will remain focused on the FOMC minutes and the US CPI report, which both will be published during the NA session and will be able to form pair’s near-term trajectory.

The USD/JPY pair remains offered in the middle of this week, getting closer to the level of 107.00, as several factors are weighing the pair. The main reason of pair’s retreat could be called easing risk appetite, as investors have already digested recent talks of the Chinese President, who urged the US to negotiations, while saying that China should push for free trade. Adding to this, ongoing retreat of the US dollar against its major counterparts is another factor that forces that pair to move in southward direction. Meanwhile, today traders will remain in anticipation of the US CPI and Fed minutes release, which will be able to bring fresh trading opportunities during the NA session.

Major events of the day:
UK Manufacturing Production – 11.30 (GMT +3)
ECB President M.Draghi’s Speech – 14.00 (GMT +3)
US Core CPI – 15.30 (GMT +3)
US Crude Oil Inventories – 17.30 (GMT +3)
FOMC Meeting Minutes – 21.00 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.2270 R. 1.2420
USDJPY S. 106.28 R. 107.84
GBPUSD S. 1.4092 R. 1.4228
USDCHF S. 0.9514 R. 0.9606
AUDUSD S. 0.7666 R. 0.7816
NZDUSD S. 0.7273 R. 0.7419
USDCAD S. 1.2511 R. 1.2751

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Thursday, April 12th

The EUR/USD pair stalled its upside rally, keeping positions today within tight range of 1.2355-80. Seems that US bulls finally found some support due to yesterday’s FOMC minutes, which showed a more hawkish bias. The Committee agreed that economic outlook had strengthened in recent months and gradual rate hikes is appropriate. However, despite better outlook of the economy, Fed members agreed that current rate hike plan doesn’t need any adjustments. In general, we can say that the FOMC minutes showed positive stance of the Committee regarding the monetary policy, which allowed the US dollar to stall its decline, thus limiting any further gains of the pair. On the other hand, today renewed demand for safety remains the key driving theme across the market on the back of rising fears of US-Russia war over Syria, which offers some support to the shared currency this Thursday. Looking ahead, now its ECB’s turn to publish minutes from the last meeting, which are expected during the European session, while the US will publish today only secondary data reports, which won’t be able to attract any attention.

The GBP/USD pair follows broad market trend and remains within yesterday’s trading range near the level of 1.4200, as several bearish factors are weighing the pair today. First, today renewed demand for safety came to a fore on the back of growing concerns over the Syria crisis. Moreover, the US dollar have finally stalled its broad retreat following yesterday’s FOMC minutes, where the Committee showed confidence over the US economic growth, which is another bearish factor for the pair. Today the US calendar will remain silent, so investors will focus their attention on the rhetoric of BoE Governor M.Carney, who will speak in the second half of the NA session.

The USD/JPY pair trades with a slight bullish bias this Thursday, recovering its recent losses. Seems that the US dollar stalled its broad retreat on the back of hawkish FOMC minutes, as the Fed revised its economic projections for growth, thus having forced the pair to change its direction. However, further growth looks limited, as market witnessed another swing in risk sentiment amid escalation of geopolitical conflict between the US and Russia. According to the latest tweets of Mr.Trump, the US is preparing air strike on Syria in response to chemical attack, which happened last weekend. However, Russia remains against these actions from the US side against Syria. In the data space, today nothing interesting is scheduled in the US economic calendar, so the pair will continue to follow broad market trend this Thursday.

The NZD/USD pair trades back and forth lately, however, remaining in the region of its 7-week highs, marked at 0.7378 spot a day before. The pair lost its bullish momentum and was showing subdued dynamics for the last two days on the back of renewed risk-off sentiment, triggered by instability in the Middle East. Adding to this, hawkish Fed minutes offered support to the US dollar yesterday, thus also lending some pressure on the pair. However, bullish trend of oil prices, which recently tested its 3-year tops, is supporting commodity-linked Kiwi, thereby limiting any retreat of the pair. Looking ahead, today the US data calendar won’t offer any relevant data reports, leaving the pair at the mercy of broad market trend.

Major events of the day:
ECB Publishes Account of Monetary Policy Meeting – 14.30 (GMT +3)
BoE Governor M.Carney’s Speech – 22.00 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.2320 R. 1.2418
USDJPY S. 106.29 R. 107.49
GBPUSD S. 1.4124 R. 1.4250
USDCHF S. 0.9535 R. 0.9617
AUDUSD S. 0.7722 R. 0.7788
NZDUSD S. 0.7326 R. 0.7394
USDCAD S. 1.2502 R. 1.2660

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Monday, April 16th

The EUR/USD pair trades within tight range of 1.2324-42, however, showing minor gains this Monday. Today renewed risk-off sentiment remains the key driver across the market on the back of fresh developments on the Middle East and lack of information on the US-China trade conflict. According to latest news headlines, this weekend the US conducted coordinated air strike on the Syrian chemical weapons facilities. Nevertheless, the market showed limited reaction on the latest US actions, as it was widely expected, especially after latest US President D.Trump’s tweets, where he clearly hinted on a possible air strike on Syria. In the day ahead, the EZ data calendar won’t be able to surprise the market with any macroeconomic releases, while the US will publish retail sales numbers, which will from pair’s further trajectory during the NA session.

The GBP/USD pair remains positive for the seventh session in a row, trading in the region of its 3-month highs, marked at 1.4296 spot during previous trading session. The positive tone of the pair could be mostly attributed to subdued dynamics of the US dollar, which failed to extend its recovery after notable drawdown, witnessed last week. On the other hand, further growth of the pair looks unlikely, as broad risk aversion, sparked by weekend’s developments in the Middle East, is weighing on the risky pound. However, in the week ahead investors will closely look for the UK important data releases, featuring data from the labor market, the CPI report and retail sales numbers, which will be especially interesting in view the BoE next policy meeting. But today, the UK calendar won’t bring us anything interesting, while the US will publish retails sales numbers, which will be able to spark some volatility on the pair during the NA session.

The NZD/USD pair was trading mostly unchanged in Asia within the range of 0.7346-63, as risk-off environment continues to form widespread market trend. Today investors are digesting the latest news, saying that the US performed coordinated air strike on Syria this weekend, which sparked fresh risk aversion, thus limiting any gains of the higher-yielding Kiwi. However, the reaction on fresh developments in the Middle East was limited, as investors had already priced in actions from the US side, especially after Mr.Trump’s tweets, where he clearly hinted on a possible air strike. Adding to this, slight retreat of oil prices from the region of its 3-year tops also weights on the commodity-linked currency of New Zealand this Monday. On the data front, today the US will release retail sales data during the NA session, which will be able to set up pair’s further direction, but until then widespread trend will continue to lead the pair.

The dollar/yen pair seems to have caught wave of bids on the back of broad demand for safety. Today the pair refreshed its intraday lows at 107.13, as traders are digesting weekend’s developments in the Middle East. As it was reported, the US conducted an air attack on Syria, with backing from Britain and France. This news sparked fresh risk aversions, thus supporting the yen, as the safe-haven currency. However, seems that the market reaction was limited and the pair stalled its retreat near the lower end of its daily range, as markets were awaiting these actions from the US, especially after D.Trump’s comments, threating with missile strike on Syria in response to chemical attack by the Syrian regime. It is expected that the broad market trend will continue to navigate the pair this Monday, while important reports from the US will also be able to bring some trading opportunities during the NA session.

Major events of the day:
US Core Retail Sales – 15.30 (GMT +3)
US Retail Sales – 15.30 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.2288 R. 1.2366
USDJPY S. 106.86 R. 108.00
GBPUSD S. 1.4174 R. 1.4326
USDCHF S. 0.9579 R. 0.9657
AUDUSD S. 0.7716 R. 0.7830
NZDUSD S. 0.7312 R. 0.7414
USDCAD S. 1.2527 R. 1.2659

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Tuesday, April 17th

The EUR/USD pair follows broad market trend this Tuesday, having broken through its resistance level of 1.2400. Recent gains of the pair could be mostly explained by weaker positions of the US dollar, as the US-China trade conflict and geopolitical concerns in the Middle East are still weighing the US currency. Adding to this, widespread demand for safety, backed by conflicts, where the US is involved, also supports the common currency lately, which, in turn, accelerates pair’s upside trend. On the data front, today we are expecting eventful session, as both economies have prepared important data reports, which will help the pair to form its further near-term trajectory this Tuesday.

The GBP/USD pair extends its northern march, having once again refreshed its 2-year highs at 1.4370 spot in European morning, which is the highest level since Brexit referendum. Seems that the market continues actively to price in a potential BoE rate hike, which is expected on the next meeting of the regulator. Moreover, broad retreat of the US dollar also supports the pair lately, as investors are still digesting recent trade conflict between the US and China, thus accelerating growth of the pound against its American counterpart. Today all traders’ attention will remain glued to the data from the UK labor market, which could affect market’s expectations of further BoE rate changes.

The AUD/USD pair lost its positive trend and gave away part of its yesterday’s gains, having marked the lower end of its daily range at 0.7760 spot. The main reason of pair’s slight retreat could be called dovish RBA minutes, which were released during the Asian trading session. As it was widely expected, the Bank didn’t surprise the market with any optimism regarding its further monetary policy. The policymakers agreed that there is no clear reason for interest rate changes in near-term projection. Moreover, the protocols showed some concerns of the regulator regarding risks for the Australian economy, which are related to household debt and China’s economic situation. However, the pair managed to turn around and gain some pips in early Europe on the back of broad sell-off of the US dollar, which remains one of the key driving factors across the market lately. In the day ahead, the US data calendar will bring as a bloc of data from the labor market, however, it is expected that widespread trend will continue to play the role of a key determinant for the pair.

The USD/JPY pair remains bearish for the second day in a row, having broken through the resistance of 107.00 this morning. Recent decline of the pair is mostly attributed to retreat of the US dollar against its major rivals on the back of latest conflicts, were the US is involved (the US-China trade conflict, geopolitical conflict in the Middle East). Moreover, it seems that risk-off sentiment continues to dominate the market in the first half of this week, as markets are still digesting recent developments in Syria. Adding to this, broad demand for safety received extra boost after China released bloc of mixed data, thereby accelerating decline of the pair. Later ahead, the US will publish data from the housing market, however, risk sentiment and the US dollar dynamics will remain key navigators for the pair during this trading session.

Major events of the day:
UK Average Earnings Index +Bonus – 11.30 (GMT +3)
UK Claimant Count Change – 11.30 (GMT +3)
German ZEW Economic Sentiment – 12.00 (GMT +3)
US Building Permits – 15.30 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.2291 R. 1.2437
USDJPY S. 106.67 R. 107.81
GBPUSD S. 1.4184 R. 1.4420
USDCHF S. 0.9544 R. 0.9664
AUDUSD S. 0.7741 R. 0.7803
NZDUSD S. 0.7317 R. 0.7393
USDCAD S. 1.2525 R. 1.2643

Your European ECN-broker,
Forex.ee