Forex.ee: Daily economic news digest

EEAnalytics · April 18, 2018, 10:20am

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

Wednesday, April 18th

The EUR/USD pair has been trading back and forth so far this week, having faced another resistance at 1.2382 spot in early Europe. It seems that the greenback has finally found support on the back of easing talks over the US-China trade war, as the market lacks any headlines regarding further escalation of the conflict. Adding to this, increased investors’ interest to risky assets puts some extra pressure on the common currency, thus limiting pair’s further upside correction. In the day ahead, the EZ will offer investors important inflation data, which will be able to help the pair to determine its further direction. On the other hand, the US has prepared for today only secondary data releases and several Fedspeaks, which expectedly won’t attract any attention, thus leaving the pair at the mercy of broad market trend.

The USD/CAD pair bounced off its 2-month lows, marked yesterday on the level of 1.2527, and managed to recover some pips on the back of typical cautiousness ahead of BoC meeting. It is expected that the Canada’s regulator will show bullish stance regarding its further monetary policy today. Positive inflationary dynamics, strong oil prices, easing uncertainty on NAFTA and positive data from the labor market - all these make possible for the BoC to consider a potential rate hike in the near future. Moreover, mildly bullish bias of the US dollar also contributes to pair’s slight recovery this Wednesday. Besides today’s BoC interest rate decision, investors will also pay attention to the US crude oil stockpiles, which will help the commodity-linked Loonie to form its further trajectory.

The GBP/USD pair lost its bullish momentum and retreated yesterday from its post-Brexit highs, marked at 1.4376 spot, on the back of mixed data from the UK labor market and slight recovery of the US dollar. However, the pair found some support in the region of 1.4280 and today trades with a mildly bullish bias, as the recovery in risk sentiment allows the higher-yielding pound to regain its positions near the level of 1.4300. Meanwhile, today we have a set of important UK data due for release in the European session, which will be able to indicate on further BoE monetary policy tightening. Today all traders’ attention will remain glued to the UK inflation data, while the US data calendar won’t offer investors anything relevant, so widespread trend will remain the key determinant for the pair during the NA session.

The AUD/USD pair was mostly flat in Asia, trading within the range of 0.7759-74. The pair was stuck in its intraday corridor due to confrontation of bulls and bears this Wednesday. On the one hand, slight recovery in risk sentiment supports higher-yielding Aussie. On the other hand, ongoing speculations regarding recent RBA minutes, which once again repeated that there is no need to adjust current rate, are playing the role of a negative factor for the pair. Adding to this, attempts of the US dollar to recover the ground across the market also limit any gains of the pair this Wednesday. On the data front, today the US data calendar won’t offer anything interesting, so investors will remain in anticipation of Australia’s employment change numbers, which will be able to spark some volatility during the next Asian session.

Major events of the day:
UK CPI – 11.30 (GMT +3)
EU CPI – 12.00 (GMT +3)
BoC Interest Rate Decision – 17.00 (GMT +3)
US Crude Oil Inventories – 17.30 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.2294 R. 1.2450
USDJPY S. 106.70 R. 107.36
GBPUSD S. 1.4221 R. 1.4411
USDCHF S. 0.9542 R. 0.9738
AUDUSD S. 0.7742 R. 0.7804
NZDUSD S. 0.7300 R. 0.7392
USDCAD S. 1.2501 R. 1.2603

Your European ECN-broker,
Forex.ee

EEAnalytics · April 20, 2018, 10:32am

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

Friday, April 20th

The EUR/USD pair was consolidating its positions during the Asian session, trading within 1.2334-53 range, amid lack of any drivers. Yesterday the pair received notable bearish impetus on the back of attempts of US bulls to retake control over the pair. However, further retreat lacked a momentum and the pair entered its narrow corridor. Moreover, the subdued dynamics of the pair could be additionally explained by increasing cautiousness, as we are heading towards the ECB meeting, which will take place next week already. But for today, the economic calendar will remain broadly silent, so widespread market trend will remain the key navigator for the pair at the last trading session of this week.

The GBP/USD pair accelerates its downside run, having refreshed its 2-week lows at 1.4046 spot this morning. The pound has been experiencing hard times so far this week, trading in the negative direction for the fourth consecutive session. The main reason of pair’s retreat could be called series of disappointing data from the UK economy, which significantly lowered prospects of a rate hike on the next BoE meeting. Adding to this, dovish comments of the BoE Governor M. Carney also call into question the rate hike next month. Yesterday, Mr. Carney delivered his speech, where he was speaking about higher rates, expected later this year, while noting that uncertainty around Brexit could slow down the process of policy tightening. Looking ahead, today the economic calendar won’t offer us anything important, leaving the pair at the mercy of broad market trend at the end of this week.

The USD/JPY pair remains bullish for the third session in a row, having refreshed its weekly highs at 107.73 spot. It seems that recent recovery of the US dollar outgrew into to a full bullish rally, overshadowing all other factors at the end of this week. Adding to this, growth pace of the Japanese inflation didn’t show any improvement, as was indicated by the latest data, which also adds some weakness to the yen, as it means that the monetary policy of the BoJ will remain highly accommodative. On the data front, today the US calendar will offer investors only second tier data, which won’t have any impact on the pair, so the US dollar price dynamics will remain as an exclusive driver for the pair this Friday.

The NZD/USD pair remains the main outsider of this session, having refreshed its 2-week lows at 0.7234 spot on the back of several bullish factors. First, today the demand for the US dollar dominates the market, which is the main determinant for the pair, pushing it to a negative territory. Moreover, another swing in risk sentiment also negatively affects positions of the higher-yielding Kiwi, thus accelerating its decline against its major competitors. Today in absence of any important data releases the US dollar price actions will remain the key determinant for the pair during this trading session.

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

Support and resistance levels for the major currency pairs:
EURUSD S. 1.2287 R. 1.2429
USDJPY S. 106.98 R. 107.70
GBPUSD S. 1.3952 R. 1.4310
USDCHF S. 0.9642 R. 0.9758
AUDUSD S. 0.7659 R. 0.7847
NZDUSD S. 0.7208 R. 0.7374
USDCAD S. 1.2552 R. 1.2734

Your European ECN-broker,
Forex.ee

EEAnalytics · April 24, 2018, 10:10am

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

Tuesday, April 24th

The EUR/USD pair refreshed its nearly 2-month lows in Asia at 1.2285 spot and now is keeping its positions near that level. The main reason of pair’s recent retreat could be called broad demand for the US dollar, which dominated the market the last few sessions. However, it seems that US bulls came out of steam this Tuesday, allowing the pair to stall its recent downside trend during Asian trades. Meanwhile, caution among investors continues to gain momentum, thus limiting pair’s sharp moves, as we are getting closer to the ECB meeting, which will be held this Thursday. On the data front, today both economies have prepared important data releases for this session, however, the US dollar price dynamics will remain as a key navigator for the pair on Tuesday.

The GBP/USD pair is no exception today, having paused its downside rally near monthly lows, marked at 1.3918 level. It seems that the pair has entered consolidation phase after five consecutive days of retreat, caused by series of disappointing data from the UK economy and bullish dynamics of the US dollar. However, the pair managed to stall its retreat in wake of downside correction of the greenback, which offered some respite to the pair. In addition to that, ongoing demand for risky assets, underpinned by easing fears over the Middle East tensions and the US-China trade conflict, also provides some support to the higher-yielding pound so far this week. Today the UK data calendar will remain silent, while the US will publish slew of important data reports during the NA session, which will be able to set up pair’s near-term trajectory.

The AUD/USD pair has finally stalled its retreat and now is trading in the region of its multi month lows, marked earlier this session on the level of 0.7578. In Asia, the pair received another bearish impetus in wake of weaker-than-expected Australian inflation data, which again hinted at the fact that the RBA will adhere to accommodative monetary policy, despite the world trend of raising interest rates. However, the pair managed to bounce off its recent lows and recovered to the area of 0.7600, as Australian bears look exhausted after significant downside rally. Moreover, slight correction of the US dollar also contributes to pair’s recent recovery. In the day ahead, investors will focus their attention on the bloc of data from the US economy, while price dynamics of the greenback will remain the key navigator for the pair during this trading session.

The USD/JPY pair follows broad market trend today, having slowed down bullish rally near its fresh 2-month highs, located at 108.87 spot. The correction of the US dollar today remains the key driving factor across the market, allowing the pair to enter consolidation phase near its recent highs. However, absence of any news headline regarding conflicts, where the US was involved, supports risk-on sentiment across the market, which in turn is limiting pair’s chances for downside correction. Later today, the US data calendar will offer investors another portion of data from the housing market and CB consumer confidence, which will be able to bring fresh trading opportunities during the NA session.

Major events of the day:
German Ifo Business Climate Index – 11.00 (GMT +3)
US CB Consumer Confidence – 17.00 (GMT +3)
US New Home Sales – 17.00 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.2139 R. 1.2323
USDJPY S. 107.26 R. 109.46
GBPUSD S. 1.3860 R. 1.4070
USDCHF S. 0.9716 R. 0.9820
AUDUSD S. 0.7545 R. 0.7711
NZDUSD S. 0.7097 R. 0.7243
USDCAD S. 1.2700 R. 1.2932

Your European ECN-broker,
Forex.ee

EEAnalytics · April 25, 2018, 10:30am

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

Wednesday, April 25th

The EUR/USD pair follows broad market trend in the middle of this trading week, having spiked the level of 1.2200 in early Europe. Yesterday the pair managed to recover some part of its losses after 3-day southern rally on the back of downside correction of the US dollar. However, it seems that the greenback regained positive tone this Wednesday, thus forming fresh market trend. On the other hand, typical cautiousness ahead of much-awaited ECB meeting, which is scheduled for tomorrow, could limit further decline of the pair. On the data front, today both economic calendars won’t offer investors anything interesting, leaving the pair at the mercy of the US dollar dynamics, which is dominating the market lately.

The GBP/USD pair failed to extend its upside correction, having met resistance on the level of 1.4000 in Asia. Yesterday the pair managed to recover some pips after its massive drawdown. However, the correction was short-lived and the pair again came under bearish control. The main reason of recent pair’s weakness could be called broad demand for the US dollar, which is the main driving factor across the market lately. Moreover, ongoing sell-off of the UK currency, caused by a slew of negative British data and dovish comments of the BoE Governor, also weighs the pair lately. Today the economic calendar won’t be able to surprise traders with any important data releases, so the pair will continue to follow broad market trend, backed by the US dollar price dynamics.

The AUD/USD pair remains the biggest loser of this Asian session, extending its retreat after yesterday’s quiet session. Today the pair again refreshed its 5-month lows on the level of 0.7571 on the back of several bearish factors, which are dragging it into the negative territory. First, returned broad-based demand for the US dollar again became the key theme of the market at the equator of this week. In addition to that, swing in risk sentiment also negatively affects the higher-yielding Aussie today. In the day ahead, we are expecting a fairly calm session, as the US economic calendar won’t offer investors anything interesting and the Australian markets will remain closed due to the celebration of ANZAC Day, so the US dollar dynamics will be the main navigator for the pair this Wednesday.

The USD/CAD pair regained its positive tone and now is moving towards its 3-week highs, marked at 1.2861 spot earlier this week. Yesterday the pair stalled its bullish rally and eased part of its gains on the back of slight downside correction of the US dollar. However, it seems that demand for the greenback returned to the market, thus forcing the pair to regain its bullish trend this Wednesday. In addition to that, decline of oil prices from its multi-year highs also contributes to pair’s positive dynamics. Looking ahead, today the US data calendar will offer investors only crude oil inventories, so investors will focus their attention on the BoC Governor S. Poloz’s speech for any fresh comments regarding further monetary policy of the Bank.

Major events of the day:
Australia - ANZAC Day
New Zealand - ANZAC Day
US Crude Oil Inventories – 17.30 (GMT +3)
BoC Governor S. Poloz’s Speech – 23.15 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.2156 R. 1.2284
USDJPY S. 108.20 R. 109.50
GBPUSD S. 1.3890 R. 1.4030
USDCHF S. 0.9746 R. 0.9832
AUDUSD S. 0.7548 R. 0.7648
NZDUSD S. 0.7075 R. 0.7179
USDCAD S. 1.2785 R. 1.2883

Your European ECN-broker,
Forex.ee

EEAnalytics · April 26, 2018, 10:36am

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

Thursday, April 26th

The EUR/USD pair was trading on a positive note during this Asian session, having bounced off its recent 2-month lows, marked at 1.2160 spot, due to slight downside correction of the US dollar. However, further sharp moves of the pair look unlikely in wake of increasing cautiousness, as now all market’s attention remains focused to the ECB meeting, which will take place during the European trading session. It is expected that the Bank will keep its stance unchanged, especially taking into account that the last meeting indicated an economic slowdown of the EZ in the beginning of the year. However, any comments of President M.Draghi during the subsequent press conference regarding any changes in Bank’s aggressive bond buying program will be able to spark volatility on the pair. Besides the key market-moving event of this Thursday, investors will also pay attention to the US data releases, which will also help the pair to form its short-term trajectory today.

The GBP/USD pair again got out of bearish control today after retesting its support level of 1.3920. However, the pair still remains pressured by a slew of disappointing UK economic figures and recent dovish talks of the BoE Governor M.Carny, which put some doubts on a May’s rate hike, while investors have already priced in the hawkish outcome of the BoE meeting. On the other hand, broad downside correction of the US dollar remains the key theme across the market today, thus limiting pair’s further retreat. As for the economic data, the UK calendar won’t offer anything relevant this Thursday, while the US will release durable goods orders, while the US dollar dynamics will remain in the status of the key driver during this trading session.

The USD/JPY pair stalled its upside trend during the Asian trades, having faced resistance on the level of 109.46, which is the highest level since mid-February. It seems that US bulls have again taken a breather this Thursday, allowing major currencies to correct higher, including the yen. Moreover, slight cautiousness ahead of tomorrow’s BoJ meeting could also help Japanese bulls to regain some positions against its US counterpart. On the other hand, it is expected that Japan’s regulator will talk about extremely accommodative monetary policy, so any comments about rate increase or QE program tapering are unlikely. Today the US data calendar will bring investors durable goods orders, while broad cautiousness, additionally underpinned by upcoming ECB meeting, and the US dollar price dynamics will continue to form pair’s near-term trajectory.

The USD/CAD pair extends its recent downside correction, having lost the most part of yesterday’s gains. On Wednesday, the pair met resistance in the region of its 3-week highs, marked on the level of 1.2897, as US bulls took a breather, allowing the pair to correct lower. However, further downside rally lacked a momentum and the pair entered consolidative phase in Asia, but still keeping bearish bias. Moreover, it seems that yesterday’s slightly hawkish rhetoric of the BoC Governor S.Poloz failed to accelerate pair’s retreat, as Mr.Poloz’s speech contained the same key points, which he already discussed earlier in the week. However, the head of the regulator also highlighted uncertainty surrounding NAFTA negotiations, which negatively affected positions of the Loonie. In the day ahead, the economic calendar will bring us only US durable goods orders, so broad market trend, backed by the greenback price dynamics, will continue to navigate the pair this Thursday.

Major events of the day:
ECB Interest Rate Decision – 14.45 (GMT +3)
ECB Press Conference – 15.30 (GMT +3)
US Core Durable Goods Orders – 15.30 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.2108 R. 1.2264
USDJPY S. 108.52 R. 109.90
GBPUSD S. 1.3876 R. 1.4022
USDCHF S. 0.9752 R. 0.9886
AUDUSD S. 0.7519 R. 0.7627
NZDUSD S. 0.7022 R. 0.7142
USDCAD S. 1.2776 R. 1.2932

Your European ECN-broker,
Forex.ee

EEAnalytics · April 27, 2018, 10:40am

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

Friday, April 27th

The EUR/USD pair again came under bearish pressure in early Europe, having refreshed its 3-month lows below the level of 1.2100, after brief consolidation phase, seen during the Asian session. Yesterday the pair received another bearish impetus following uninformative outcome of the ECB meeting. Moreover, during the subsequent Q&A session the ECB President M. Draghi mostly reiterated all we heard before, saying that QE program would last until sustained inflation adjustment. Also Mr. Draghi added that the ECB didn’t discuss the outlook for monetary policy, thus avoiding any further comments regarding Bank’s plans. In general, the ECB President sounded cautious and concerned, thus sending the pair nearly a cent lower, towards the level of 1.2100. Today investors will focus their attention on the German unemployment rate and the US preliminary GDP figures, which will help the pair to form its near-term trajectory at the end of this week.

The USD/JPY pair recovered the most part of its losses, witnessed during the Asian trading session, and entered the region of its nearly 3-month highs, marked earlier this week on the level of 109.46. Today the pair received another bullish impetus on the back of dovish outcome of the BoJ meeting. As it was widely expected the Bank announced no changes to its monetary policy settings, however, removing timeframe for the Japanese economy to reach 2% inflation, thus indicating that the BoJ will extend its massive economy stimulation program for longer period. However, the market showed limited reaction of this event, as investors have already got used to constantly dovish outcomes of the BoJ meetings. Looking ahead, today all eyes will remain glued to the US GDP report, while ongoing demand for the US dollar will remain the key navigator for the pair, thus determining its further direction.

The GBP/USD pair came under renewed selling pressure at the end of this trading week, having broken through the support level of 1.3900. It seems that dovish outlook of the BoE Governor M. Carney, in which he hinted that the BoE might delay rate hike, expected next month, continue to hold the pound under pressure. In addition to that, the US dollar continues to conquer positions across the market at the end of this week, which also negatively affects the pair. On the data front, today both economic calendars will release preliminary GDP reports, while investors will also pay attention to the speech of Mr. Carny, which may contain fresh clues on a potential rate hike in May.

The AUD/USD pair extends its retreat, having refreshed its multi-month lows at 0.7532 spot. Recent weakness of the pair could be mostly explained by ongoing demand for the US dollar, which has been the main driving factor across the market so far this week. Moreover, even positive Australia’s PPI data failed to bring any respite to the pair. Meanwhile, the next risky event for the pair remains the RBA monetary policy meeting, which will take place next Tuesday. However, markets expect that the RBA won’t be able to provide any surprises, especially taking into account recent red Australia’s inflation figures. But today, all investors’ attention will remain focused to the US GDP data, which will be able to bring fresh trading opportunities during the NA session.

Major events of the day:
German Unemployment Change – 10.55 (GMT +3)
Prelim. UK GDP – 11.30 (GMT +3)
Prelim. US GDP – 15.30 (GMT +3)
BoE Governor M.Carney’s Speech – 17.00 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.2023 R. 1.2249
USDJPY S. 108.87 R. 109.67
GBPUSD S. 1.3831 R. 1.4037
USDCHF S. 0.9788 R. 0.9946
AUDUSD S. 0.7520 R. 0.7604
NZDUSD S. 0.7031 R. 0.7109
USDCAD S. 1.2795 R. 1.2925

Your European ECN-broker,
Forex.ee

EEAnalytics · May 2, 2018, 9:59am

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

Wednesday, May 2nd

The EUR/USD pair managed to correct above its psychological level of 1.2000 this Wednesday, after testing the region of 1.1980, which is the lowest level in the last 4 months. It seems that US bulls have eased pressure across the market in wake of a typical cautiousness ahead of the FOMC meeting, which will take place during the NA session. It is widely expected, that the regulator will keep its interest rate unchanged, while any comments regarding further plans of the Fed will be able to spark some volatility across the market. Today the CB is likely to confirm market expectations of a June rate hike, however, the main market-moving event will be if the Bank points to 3 rate hikes this year. Besides the FOMC meeting, investors will also pay attention to the German PMI and the US ADP jobs report, but broad cautiousness will limit market’s reaction on these releases.

The GBP/USD pair remains under bearish pressure this Wednesday, having refreshed its 4-month lows on the level of 1.3581. The results of the British economy continue to disappoint markets, thereby lowering chances that the BoE will increase its interest rate hike next week. Yesterday the UK published manufacturing PMI data, which came blow markets expectations, thus sending the pair to the area of its multi-month lows. Moreover, ongoing demand for the US dollar is another negative factor for the pair, which is pushing the pair to the red zone lately. As for economic events for today, the UK will offer markets the construction PMI report, but investors will focus their attention on the Fed interest rate decision, which will take place in the second half of the NA session.

The AUD/USD pair recovered minor part of its losses this Wednesday after testing 11-month lows at 0.7473. Yesterday the pair received another bearish impetus on the back of uninformative outcome of the RBA meeting. As it was widely expected, yesterday the Bank left its interest rate unchanged on the level of 1.5%, while noting that it would keep the monetary policy accommodative to see any sign of economic growth. However, today the pair managed to turn around and recover minor part of its losses in wake of positive data from the Chinese manufacturing sector. But any further sharp moves of the pair look unlikely, as we are heading towards the Fed meeting, which expectedly will bring fresh hints on further monetary policy of the regulator. Besides the Fed interest rate decision, markets will also pay attention to the ADP jobs report, which will also be able to bring some trading opportunities before the key risky event of this Wednesday.

The USD/CAD pair trades back and forth so far this week, as neither bulls nor bears can regain control of the pair. On the one hand, broad demand for the US dollar continues to dominate the market lately, pushing the pair into the positive territory. On the other hand, upbeat Canada’s GDP numbers and hawkish comments of the BoC Governor S.Poloz, who yesterday stated that he sees no need for further monetary stimulus on the back of positive results of the economy, provided notable support to Canadian dollar. Today all eyes will remain focused on the key event of this Wednesday – FOMC meeting, as it may contain some fresh hints regarding further Fed monetary policy tightening measures.

Major events of the day:
German Manufacturing PMI – 10.55 (GMT +3)
UK Construction PMI – 11.30 (GMT +3)
US ADP Nonfarm Employment Change – 15.15 (GMT +3)
US Crude Oil Inventories – 17.30 (GMT +3)
Fed Interest Rate Decision – 21.00 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1915 R. 1.2121
USDJPY S. 108.99 R. 110.31
GBPUSD S. 1.3473 R. 1.3843
USDCHF S. 0.9867 R. 1.0019
AUDUSD S. 0.7428 R. 0.7576
NZDUSD S. 0.6960 R. 0.7062
USDCAD S. 1.2766 R. 1.2954

Your European ECN-broker,
Forex.ee

EEAnalytics · May 3, 2018, 10:25am

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

Thursday, May 3rd

The EUR/USD pair has finally found some buying interest, having bounced off its 5-month lows, located at 1.1938. Today offered tone of the US dollar remains the key theme across the market, allowing the pair to recover some part of its losses. Recent downside correction of the greenback is mainly attributed to yesterday’s FOMC meeting, where the regulator failed to surprise investors. The Bank left its interest rate unchanged on the level of 1.5%, matching broad market expectations. Moreover, the Fed stressed that sees inflation close to its target level of 2% and expects the extension of gradual growth of the economy. However, the regulator did not offer any comments regarding the acceleration of interest rate growth, leaving in the prospect only two rate hikes this year. On the data front, today all eyes will remain glued to the preliminary EZ inflation data, while the next risky event for the pair is scheduled for this Friday, as the US will release NFP, which will bring spike of volatility across the market.

The GBP/USD pair follows broad market trend today and recovers its recent losses, having bounced off its nearly 5-month lows, marked at 1.3555 on Wednesday. The correction of the pair could be mainly explained by yesterday’s not enough hawkish outcome of the Fed meeting, where the regulator reiterated all we heard before, without any additional information about monetary policy tightening this year. Now all market’s attention has shifted to the BoE interest rate decision, where the regulator is expected to increase its rate. However, the odds of a BoE rate hike have fallen quite sharply, as the latest results of British economy leave much to be desired. As for economic releases for today, the UK has prepared the services PMI report, while the US data calendar will offer US ISM Non-manufacturing report, which will form near-term trajectory this Thursday.

The AUD/USD pair extends its post-Fed meeting upside correction, having climbed above the level of 0.7500. Yesterday the pair was trading back and forth all due to US dollar price actions. However, the pair finally found support after the results of the FOMC meeting turned out to be less informative than the market expected. Yesterday, the regulator stressed that economic growth pace remains moderate and risks are balanced, while not offering any additional information about further policy tightening measures. This outcome negatively affected positions of the US dollar, allowing the major assets to recover some ground, including the Aussie. Moreover, block of upbeat Australia’s data, featuring trade balance and housing market data, also contributed to pair’s recent correction. Today the economic calendar will remain silent, so investors will continue to digest recent economic events.

The USD/JPY pair extends correction from its 3-month highs, marked on the level of 110.03 a day before. It seems that the pair lost its bullish momentum after yesterday’s not enough hawkish Fed meeting. On Wednesday, the regulator didn’t make any changes to its policy projections, thereby leaving in the prospect only two additional rate hikes this year. The lack of any surprises from the Fed’s side has lowered the divergence between the Fed and BoJ, thereby additionally supporting the Japanese currency. Looking ahead, today’s session promises to be quiet, as Japanese markets will remain closed in observance of Constitution Day, while the US economic calendar will offer only ISM Non-Manufacturing PMI, leaving the pair at the mercy of broad market trend this Thursday.

Major events of the day:
Japan - Constitution Day
UK Services PMI – 11.30 (GMT +3)
Prelim. EU CPI – 12.00 (GMT +3)
US ISM Non-Manufacturing PMI – 17.00 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1879 R. 1.2067
USDJPY S. 109.38 R. 110.26
GBPUSD S. 1.3486 R. 1.3708
USDCHF S. 0.9911 R. 1.0041
AUDUSD S. 0.7439 R. 0.7563
NZDUSD S. 0.6956 R. 0.7050
USDCAD S. 1.2772 R. 1.2942

Your European ECN-broker,
Forex.ee

EEAnalytics · May 7, 2018, 9:01am

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

Monday, May 7th

The EUR/USD pair follows broad market trend this Monday, having refreshed its intraday lows at 1.1938 spot. It seems that demand for the US dollar has improved across the market, forcing the pair to step closer to its multi-month lows, marked on the level of 1.1911 last Friday in wake of data from the US labor market. At the end of the last week, the US released the NFP report, which failed to match market expectations, however, the US dollar still rose against its major competitors, as the overall US unemployment rate showed positive results. Moreover, growing divergence between the ECB and Fed also keeps the pair under pressure lately on the back of market expectations for two Fed interest rate hikes this year. As for the data for today, the economic calendar won’t be able to offer us anything interesting, so the pair will continue to follow broad market trend during this trading session.

The GBP/USD pair remains highly pressured at the start of this working week, trading in the region of its 4-month lows, marked below the level of 1.3500 during the last trading session. The pair have lost more than 8 cents for the last 3 weeks, which could be explained by lowered odds of a rate hike on the next BoE meeting, which will take place this Thursday already. Earlier this year, the BoE showed intention to increase its refi rate on the back of acceleration of the UK economic growth. However, market’s expectations of a rate hike faded away after the most part of UK economic indicators came in red color, forcing investors to look skeptical at the possible tightening of the BoE monetary policy. Moreover, improved demand for the US dollar and increased divergence between the Fed and BoE also contribute to the sharp downside rally of the pair. In the day ahead, broad market trend will continue to play a role of the key navigator for the pair, as the economic calendar won’t bring us anything interesting this Monday.

The NZD/USD pair failed to extend its recovery mode and eased part of its overnight gains, stepping closer to the level of 0.7000. The pair continues to stay in red zone, close to its 4-month lows, marked at 0.6985 spot last week, as buying interest around the greenback, additionally boosted by positive US unemployment rate, continues to dominate across the market at the start of this working week. On the other hand, bullish rally of oil prices, which have refreshed their multi-year highs, offers some support to the commodity-linked Kiwi, thus limiting further downside moves of the pair. The next risky event of the pair is RBNZ meeting, which is scheduled for Thursday, but today the economic calendar won’t offer us anything relevant, leaving the pair at the mercy of market trend.

The AUD/USD pair is the worst performer of this trading session, moving in the direction of it yearly lows, located on the level of 0.7473. This Monday, the pair again came under bearish pressure after 3 consecutive days at a profit on the back of renewed buying interest around the US dollar. Moreover, bloc of mixed data from the Australian economy also collaborated with pair’s recent retreat. In the longer term, it is expected that the pair will keep its bearish tone on the back of increased divergence between the Fed and RBA, as the US regulator is expected to implement 2 rate hikes this year, while the Australian bank will keep its interest rate flat. Looking ahead, today the US data calendar won’t bring us anything important, so investors will focus their attention on the Australian retail sales data due for release during the next Asian trading session.

Major events of the day:
None

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1870 R. 1.2040
USDJPY S. 108.35 R. 109.61
GBPUSD S. 1.3432 R. 1.3632
USDCHF S. 0.9934 R. 1.0054
AUDUSD S. 0.7460 R. 0.7598
NZDUSD S. 0.6961 R. 0.7081
USDCAD S. 1.2783 R. 1.2947

Your European ECN-broker,
Forex.ee

EEAnalytics · May 8, 2018, 9:28am

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

Tuesday, May 8th

The EUR/USD pair remains directionless this Tuesday, trading within its intraday range of 1.1910-40, as US bulls seem to have taken a breather, allowing the pair to stall its retreat. However, the pair looks very fragile lately, having retested yesterday its 4-month lows below the level of 1.1900. Recent weakness of the pair is mainly explained by broad demand for the US dollar and increased divergence between the Fed and ECB, as Fed plans to perform 2 rate hikes this year, while the ECB sees only a slight improvement in the EZ economy, without any hints at further monetary policy tightening. As for economic events, today in early Europe the Fed Chair J. Powell will deliver his speech, while during the NA session the US will release JOLTs jobs report and the US President D. Trump will announce his decision on the Iranian nuclear program.

The GBP/USD pair found some support at the beginning of this week, extending its rebound from 4-month lows, marked on the level of 1.3486 last Friday. It seems that investors have already started preparations for extremely important Thursday’s session, allowing the pound to correct higher after its significant downside rally. On Thursday, the BoE will hold a meeting on monetary policy, where investors hope to see much-awaited rate hike, but the latest economic data of the UK economy say that the regulator will postpone this decision. Moreover, the US will release CPI figures, which can be treated as an indicator of how aggressive the policy will be used by the Fed, which in turn will lower or increase divergence between the regulators. But now, investors remain in anticipation of the JOLTs jobs report, which is the only important release for today, so broad market trend and increasing cautiousness will remain as key navigators for the pair during today’s trades.

The AUD/USD pair again became the weakest asset of the session, having stuck in the region of yearly lows, located at 0.7473 spot. This time, the catalyst for pair’s decline became disappointing Australian retail sales figures, which even more lowered the odds of any RBA monetary policy tightening in near-term projection. In addition, the widespread demand for the US dollar continues to dominate the market, which also contributes to decline of the pair. And even positive China’s trade figures failed to offer any support to Australian bulls, leaving the pair at the mercy of US dollar performances. Looking ahead, today the US will publish JOLTs jobs data, which will bring additional trading opportunities during the NA session, but until then the pair will continue to follow broad market trend.

The USD/JPY pair extends its downside correction for the fourth consecutive session, having tested this morning the support level of 109.00. It seems that US bulls remain exhausted after significant rally, witnessed earlier this month, allowing the pair to correct lower. Moreover, the absence of any fundamental drivers this week, except the release of US inflation figures schedule for Thursday, also lowers the activity of US bulls. However, notable divergence between monetary policies of the Fed and BoJ remains crucial driver for the pair, limiting downside moves of the pair. But for today, the US has prepared another portion of data from the labor market, which will help the pair to determine its near-term direction in NA session.

Major events of the day:
JOLTs Job Openings – 17.00 (GMT +3)
US President D. Trump’s Speech – 21.00 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1852 R. 1.2014
USDJPY S. 108.43 R. 109.71
GBPUSD S. 1.3488 R. 1.3608
USDCHF S. 0.9949 R. 1.0095
AUDUSD S. 0.7467 R. 0.7567
NZDUSD S. 0.6970 R. 0.7064
USDCAD S. 1.2812 R. 1.2932

Your European ECN-broker,
Forex.ee

EEAnalytics · May 9, 2018, 9:54am

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

Wednesday, May 9th

The EUR/USD pair follows broad market trend and extends its downside trend, having again refreshed its multi-month lows on the level of 1.1826. Weakness of the pair is still explained by the continuing demand for the US dollar, as investors expect to see more hawkish monetary policy from the Fed this year. Moreover, the bullish dynamics of the US dollar was additionally underpinned by yesterday’s announcement of the US President D. Trump, who decided to withdraw the US from the Iran deal. There is no clear explanation, why the US dollar gained additional bullish momentum after Mr. Trump’s decision, but some market participants believe that the rise in oil prices, triggered by the US President’s announcement, could accelerate Fed monetary policy tightening pace. On the data front, today the US economy will offer investors only the PPI report, so broad market trend, determined by the US dollar dynamics, will continue to navigate the pair.

The GBP/USD pair continues to stay under bearish control lately, have been locked in the region of its 4-month lows, which was again refreshed below the level of 1.3500 a day before. Broad demand for the US dollar remains the key underlining theme across the market, forcing the pair to retreat into the negative territory. However, now markets’ attention remains glued to the BoE interest rate decision, which is expected to show no changes in the monetary policy. Earlier this year the BoE Governor M. Carney delivered hawkish rhetoric, indicating a potential rate hike. However, the series of disappointing UK economic data forced the market to change the forecasts on less hawkish. In any case, investors will continue to await for the outcome of the meeting, which most likely will spark some volatility across the market. As for the data, nothing much is scheduled in the economic calendar for this Wednesday, so the US dollar price dynamics and increasing cautiousness ahead of the crucial event will determine pair’s further direction.

The NZD/USD pair yesterday again came under bearish pressure, as the US dollar regained its momentum, sending the pair to refresh its 5-month lows on the level of 0.6953. However, the pair managed to stall its retreat on the back of US President D. Trump’s decision to exit Iran’s nuclear deal. Mr. Trump’s decision on Iran deal led to another spike in oil prices, which in turn offered support to commodity-linked assets, such as the Kiwi. Another reason of pair’s subdued dynamics is upcoming RBNZ meeting, which will take place during the next Asian session. Big surprises from the Bank are not expected, but any comments on further regulator’s projections could affect current divergence between the Fed and RBNZ. Today the US PPI will be the only relevant data report, so broad market trend and greenback price dynamics will continue to navigate the pair.

The USD/JPY pair bounced off the level of 109.00 in Asia and refreshed its weekly highs at 109.64 on the back of ongoing demand for the US dollar. The Japanese yen remains the weakest asset of this session, as US bulls continue to dominate the market in the middle of the week. Yesterday the Fed Chairman J. Powell delivered his speech, where he didn’t provide investors with any surprises, but noting that the regulator will continue rate rising policy. Moreover, the divergence between the Fed and BoJ remains one of the key driving factors, which is pushing the pair in the northern direction. The economic calendar is light this Wednesday, so the pair will continue to follow widespread market trend during today’s trades.

Major events of the day:
US PPI – 15.30 (GMT +3)
US Crude Oil Inventories – 17.30 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1778 R. 1.1980
USDJPY S. 108.57 R. 109.63
GBPUSD S. 1.3432 R. 1.3650
USDCHF S. 0.9978 R. 1.0064
AUDUSD S. 0.7377 R. 0.7565
NZDUSD S. 0.6907 R. 0.7061
USDCAD S. 1.2819 R. 1.3063

Your European ECN-broker,
Forex.ee

EEAnalytics · May 10, 2018, 10:17am

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

Thursday, May 10th

The EUR/USD pair follows broad market trend, correcting higher from its multi-month lows, marked on the level of 1.1823 a day before. Today’s recovery of the pair is mostly attributed to a softer price dynamics of the US dollar, caused by increased cautiousness ahead of crucial US data. Many market participants believe that positive US inflation data will help the Fed to accelerate monetary policy tightening pace in the form of another rate hike this year. This outcome will expand the divergence between the Fed and ECB, which will increase pressure on the euro by its American rival. Meanwhile, today the EZ economic calendar won’t offer investors anything important, so all market’s attention will remain glued to the US CPI report. However, today traders will also pay attention to the BoE meeting, which will provide some correlation impetus to the pair during European trades.

The GBP/USD pair was trading without any changes so far this week, keeping its positions within the range of 1.34-1.35, as investors were refraining of opening important positions ahead of risky events. And now all markets’ attention remains glued to the one of the key events of this Thursday – the BoE interest rate decision. A month ago, market participants believed that the UK regulator would increase its interest rate on today’s meeting, but after a series of disappointing economic data and dovish rhetoric of the BoE Governor M. Carney the market changed its expectations on less hawkish. Now it is expected that the Bank will keep its interest rate unchanged, however, investors will eagerly await for comments from MPC members on a slowdown of the UK economy in the first quarter, which will likely have significant impact on the pair. But after the BoE decision, the focus will shift towards the US inflation report, which will also be able to produce notable volatility across the market.

The NZD/USD pair came under strong bearish pressure in early Asia and again refreshed its 5-month lows on the level of 0.6903 due to results of the RBNZ meeting. As it was widely predicted, the CB left its interest rate unchanged at 1.75% level. However, the statement of the Bank didn’t look optimistic, as inflation remains below the target level and the Bank sees its growth very gradual. In addition to that, during the subsequent press conference the head of the RBNZ A. Orr also showed quite dovish tone, saying that the Bank will continue to maintain the interest rate at 1.75% for a considerable amount of time, seeing it as the best way to push inflation towards the level of 2%. In general, the overall tone of the Bank remained dovish, indicating a low rate of inflation and the intention to keep its policy accommodative for a longer period. However, that was not the only important event for today, as the US has prepared the inflation report, which is due for released during NA session.

The USD/JPY pair was trading without significant changes during the Asian session, stuck in the region of 109.63-92 on the back of subdued dynamics of the US dollar. Seems that US bulls eased its pressure on the market this Thursday, allowing major currency pairs to consolidate its positions. Moreover, it seems that the market broadly ignored the latest comments of the BoJ Governor H. Kuroda, who once again reiterated that the regulator would continue to implement its hyper-easy monetary approach. But now all markets’ attention remains focused on the release of the US price consumer index, which will bring fresh trading opportunities during the NA session.

Major events of the day:
Switzerland - Ascension Day
UK Manufacturing Production – 11.30 (GMT +3)
BoE Inflation Report – 14.00 (GMT +3)
BoE Interest Rate Decision – 14.00 (GMT +3)
US Core CPI – 15.30 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1782 R. 1.1932
USDJPY S. 108.68 R. 110.36
GBPUSD S. 1.3442 R. 1.3658
USDCHF S. 0.9984 R. 1.0088
AUDUSD S. 0.7388 R. 0.7508
NZDUSD S. 0.6927 R. 0.7025
USDCAD S. 1.2735 R. 1.3035

Your European ECN-broker,
Forex.ee

EEAnalytics · May 11, 2018, 10:04am

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

Friday, May 11th

The GBP/USD pair remains pressured at the end of the week after yesterday’s volatile session, as markets continue to digest the outcome of the BoE meeting. As it was widely expected, yesterday the UK’s CB left its interest rate unchanged at 0.5%, which was caused by a series of weak British economic data. In additional to that, all MPC members agreed that any further increases in rate are likely to be at a gradual pace and to a limited extent. And finally, during its meeting the Bank lowered its near-term forecasts on inflation and GDP. All these developments exerted considerable pressure on the pound, forcing the pair to refresh its 4-month lows below the level of 1.3500. Now markets expect for a rate hike sometime in August or November, but it will be possible if UK’s economic situation improves significantly. However, the pair managed to turn around and recovered some positions above its psychological level of 1.35, following another disappointment of Thursday – weak US inflation data, which forced US bulls to take a breather and allowed the major currencies to correct higher against the greenback, including the pound. But today, nothing much is scheduled in the data calendar, so investors will continue to digest recent economic events, thereby forming near-term trajectory of the pair.

The EUR/USD pair was following broad market trend and was consolidating its positions near the level of 1.1900 during the Asian session. The main driving factor across the market again remains the greenback price dynamics after yesterday’s weak US inflation data. The retreat of the US dollar gave an oxygen to the market, allowing the pair to recover some ground. Moreover, the US dollar received some additional pressure, as weak US macroeconomic data lowered odds of an additional rate hike this year, thus decreasing the divergence between the Fed and ECB somewhat. Yesterday the pair tested the region of the 1.1950, but returned to the level of 1.1900 in early Europe on the back of attempts of the US dollar to recover after yesterday’s decline. Looking ahead, today the economic calendar will bring us only the speech of ECB President M. Draghi, therefore the broad market trend will remain in the status of a key navigator of the pair at the end of this week.

The USD/JPY pair recovered part of its recent losses, caused by yesterday’s disappointing US CPI figures. Yesterday the pair came under notable bearish pressure, following much-awaited US inflation report, which failed to match markets expectations, sending the pair to the region of 109. However, the pair recovered its bullish tone and bounced off its recent lows, as divergence between the CBs continues to support the pair. On the data front, the US economic calendar will offer investors only secondary data reports, which will have limited reaction, so the pair will continue to follow broad market trend, partially determined by recent US macroeconomic data.

The NZD/USD pair consolidates its yesterday’s gains within the range of 0.6955-75, as several factors influence the pair this Friday. Recall, earlier this week the pair received strong bearish impetus, triggered by dovish outcome of the RBNZ meeting, where the Bank stated that it would continue to adhere to accommodative policy, as NZ inflation remains below the target level of 2%. However, on Thursday the pair managed to turn around, after meeting the support level of 0.6902, due to disappointing US inflation figures, which lowered chances of fourth Fed rate hike in 2018, thus stalling bullish rally of the greenback. In the day ahead, the US dollar price dynamics will remain the key determinant for the pair, as the data calendar won’t offer us anything relevant at the last working day of the week.

Major events of the day:
Canada Employment Change – 15.30 (GMT +3)
ECB President M. Draghi’s Speech – 16.15 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1797 R. 1.2005
USDJPY S. 108.84 R. 110.28
GBPUSD S. 1.3372 R. 1.3688
USDCHF S. 0.9964 R. 1.0088
AUDUSD S. 0.7413 R. 0.7599
NZDUSD S. 0.6871 R. 0.7025
USDCAD S. 1.2671 R. 1.2909

Your European ECN-broker,
Forex.ee

EEAnalytics · May 15, 2018, 10:12am

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

Tuesday, May 15th

The EUR/USD pair follows broad market trend this Tuesday, retreating from its yesterday’s highs, marked in the vicinity of 1.2000. Renewed downside trend of the pair can be mostly explained by upside correction of the US dollar against its major rivals. It seems that markets have already digested recent disappointing US inflation figures, allowing the greenback to regain control over the market, thereby forming downside trend for the pair. As for the economic releases, today we have data-heavy session, as the economic calendar will bring us German ZEW surveys, preliminary EZ GDP figures and US retail sales, which will help the pair to form its further trajectory. However, broad market trend, partially determined by the US dollar price dynamics, will also be able to influence pair’s further actions.

The GBP/USD pair again is navigating southwards, having faced resistance in the vicinity of 1.3600. The pair failed to extend its recovery after BoE meeting, as markets are still digesting dovish outcome of the UK regulator’s meeting. Recall, last Thursday the BoE left its interest rate unchanged at 0.5%, which was caused by a series of weak British economic data. This decision triggered the increase of divergence between the US and UK CBs, which remains one of the key navigators for the pair lately. Moreover, renewed buying interest around the US dollar also is putting some pressure on the pair lately. In the day ahead, we will have pretty busy trading session, as both economies have prepared important releases for this Tuesday.

The AUD/USD pair failed to extend its recent recovery and dropped to area of 0.7500. Recent downside move of the pair is mostly attributed to renewed buying interest around the greenback. In addition to this, the pair accelerated its retreat after the RBA published minutes from the last policy meeting. As it was widely expected, the minutes didn’t offer any surprise, while again reiterating that high household debt, inflation and pick-up in wages are still bringing some uncertainty to the economy. Also the Bank pointed out that it would be appropriate to hold the cash rate steady, as the RBA sees current monetary policy as the source of stability and confidence. Re-stressing weak points of the Australian economy has intensified the divergence between the Fed and RBA, which additionally weighed the pair this Tuesday. Looking ahead, the US will publish retail sales numbers, but greenback price actions will continue to navigate the pair during this trading session.

The NZD/USD pair remains highly offered this Tuesday, having again refreshed its 5-month lows on the level of 0.6892. It seems that US bulls have regained the control over the market after short breather, triggered by recent weak US economic data, which in turn pushes the pair to the red territory. Another bearish factor for the pair remain intensions of the Fed to implement monetary policy tightening measures, which increases divergence between the Fed and RBNZ. Moreover, slight retreat of oil prices also added some pressure on the commodity-linked NZ dollar, and even positive Chinese industrial production report failed to offer any support to the pair. Next to see is the US retail sales report, while the US dollar dynamics will remain as the key driver for the pair this Tuesday.

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 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. 1.1878 R. 1.2022
USDJPY S. 109.01 R. 109.99
GBPUSD S. 1.3491 R. 1.3641
USDCHF S. 0.9939 R. 1.0041
AUDUSD S. 0.7496 R. 0.7580
NZDUSD S. 0.6869 R. 0.6997
USDCAD S. 1.2712 R. 1.2874

Your European ECN-broker,
Forex.ee

EEAnalytics · May 16, 2018, 10:06am

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

Wednesday, May 16th

The EUR/USD pair remains broadly unchanged since today’s opening, having stuck in the region its multi-month lows, marked on the level of 1.1816 earlier this session. Yesterday the pair came under renewed bearish pressure in wake of increased demand for the greenback, despite weak US retail sales numbers. Recent bearish dynamics of the pair could be explained by intentions of the Fed to implement tightening measures to its monetary policy, which increases the divergence between the Fed and ECB, as the European regulator continues to remain in wait-and-see mode. Today during the European session investors will focus their attention on the first-tier EU CPI data and speech of the ECB president M. Draghi, while the NA session will bring us data from the US housing market, which will also help the pair to form its near-term trajectory.

The GBP/USD pair extends its yesterday’s corrective upside move from its 5-month lows, marked on the level of 1.3451. Yesterday’s retreat is mostly attributed to another spike of demand for the US dollar across the market. Moreover, the pound continues to suffer from recent dovish outcome of the BoE meeting, where the regulator left its interest rate unchanged on the back of decline in the UK economy. And finally another set of weak data from the UK labor market, published on Tuesday, also negatively affected positions of the pound, limiting its chances of recovery. Today the UK data calendar won’t bring investors anything interesting, while the US will publish data from the housing market, which will offer investors fresh trading opportunities during the NA session.

The USD/JPY pair corrects lower this Wednesday, after testing its 3.5-month highs, marked on the level of 110.45. Moreover, markets mostly ignored negative Japan’s GDP figures, not offering any support to the pair during the Asian session. The main driver for the pair remains the US dollar price dynamics, which continues to push the pair in the north direction. However, it seems that today US bulls took a short breather after another upside rally of the greenback against its major rivals, witnessed a day before. In addition to that, slightly increased demand for safety also offers some support to the yen, thus weighing the pair. As for the data, today the US economic calendar will offer investors only the building permits report, again leaving the pair at the mercy of US dollar price actions.

The NZD/USD pair again is trying to recover from its 5-month lows, located on the level of 0.6851. The pair continues to stay negative so far this week, which could be mainly explained by ongoing demand for the US dollar. However, it seems that the greenback eased pressure on the market this Wednesday, allowing the pair recover some ground. Moreover, ongoing rally in oil prices, which recently refreshed its 3.5-year highs, offer some support to the commodity-linked Kiwi, limiting retreat of the pair. Looking ahead, today the US economic calendar will bring us data from the housing market and oil stockpiles, while broad market trend, determined by the US dollar price dynamics, will continue to navigate the pair during this trading session.

Major events of the day:
EU CPI – 12.00 (GMT +3)
ECB President M. Draghi’s Speech – 15.00 (GMT +3)
US Building Permits – 15.30 (GMT +3)
US Crude Oil Inventories – 17.30 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1747 R. 1.1985
USDJPY S. 109.33 R. 110.97
GBPUSD S. 1.3361 R. 1.3687
USDCHF S. 0.9954 R. 1.0072
AUDUSD S. 0.7395 R. 0.7577
NZDUSD S. 0.6810 R. 0.6952
USDCAD S. 1.2718 R. 1.3010

Your European ECN-broker,
Forex.ee

EEAnalytics · May 17, 2018, 9:42am

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

Thursday, May 17th

The EUR/USD pair lost its bullish tone in early Europe and returned to the region of 1.1800. In Asia, the pair was trading on a positive note in wake of ongoing correction of the US dollar, which allowed the pair to refresh its intraday highs on the level of 1.1837. However, the pair failed to extend its correction and returned to the area of 1.1800. Renewed weakness of the pair could be partially explained by uncertainty on the political field of Italy. As it was reported earlier, Italy’s 5 Star movement and League parties are going to form a coalition. Both these parties have showed itself as nationalistic and anti-EU, so investors are considering negative consequences, which may cause the coalition. Looking ahead, today the EU calendar will offer investors only second-tier data reports, so investors will remain in anticipation of the Philly Fed manufacturing index, which will be able to spark some volatility across the market during the NA session.

The GBP/USD pair is the top gainer of this trading session, having rallied for about 80 pips in Asia on the back of fresh Brexit developments. According to the latest news reports, hard-Brexit scenario could be avoided. Earlier today, it became known that the UK is about to inform the EU that it intends to remain in the customs union in an effort to avoid hard divorce. The pound positively reacted on this news, sending the pair to refresh its intraday highs on the level of 1.3569. However, there is still plenty of uncertainties related to Brexit, so the pound will remain in anticipation of fresh developments for further direction. On the other hand, today’s retreat of the US dollar also collaborated with pair’s positive tone, as US bulls continue to remain sluggish after notable rally of the greenback against its major rivals. On the data front, today the UK data calendar won’t bring us anything relevant, so investors will remain focused on the US data, scheduled for the NA session, while any news regarding Brexit will also have significant impact on the pair.

The AUD/USD pair is trading on a positive note this Thursday, extending its rebound from the region of its yearly lows, marked in near the level of 0.7400. Yesterday the pair met support on the level of 0.7447 on the back of slight retreat of the greenback against its major competitors after notable bullish rally. In addition to that, positive data from the Australian labor market offered some extra support to the pair during the Asian trading session, thus accelerating its recovery. Meanwhile, investors’ focus shifts towards the Philly Fed index, which will be published during the NA session, however, the US dollar correction will continue to influence the pair during today’s trades.

The USD/JPY pair ignores retreat of the US dollar, keeping its positions within striking distance of its 3.5-month highs, marked on the level of 110.45 earlier this week. It seems that tremendously increased divergence between the Fed and BoJ remains one of the key navigators for the pair lately. However, further gains of the pair also look limited in wake of increased demand for safety due to renewed tensions between the US and N. Korea. According to the latest news reports, Pyongyang stated that the summit between the leaders of the US and N. Korean won’t take place if the US continues to insist on unilateral denuclearization. In the day ahead, the US will offer investors only the Philly Fed manufacturing index, again leaving the pair at the mercy of broad market trend this Thursday.

Major events of the day:
Philadelphia Fed Manufacturing Index – 15.30 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1717 R. 1.1899
USDJPY S. 109.90 R. 110.66
GBPUSD S. 1.3411 R. 1.3579
USDCHF S. 0.9969 R. 1.0041
AUDUSD S. 0.7420 R. 0.7570
NZDUSD S. 0.6821 R. 0.6955
USDCAD S. 1.2702 R. 1.2930

Your European ECN-broker,
Forex.ee

EEAnalytics · May 18, 2018, 9:58am

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

Friday, May 18th

The EUR/USD pair trades with mild bullish bias this Friday, keeping its positions above the level of 1.1800, after brief consolidation phase, witnessed during the previous NA session. It seems that the pair has finally stalled its downside trend after four consecutive days at a loss. The main reason of pair’s recent recovery can be called another downside correction of the US dollar against its major rivals. However, the pair remains under notable bearish pressured lately, as significantly increased divergence between the Fed and ECB continues weighing on the common currency. In the day ahead, the broad market trend will remain the exclusive driver for the pair, as economic calendar won’t bring us anything relevant this Friday.

The GBP/USD pair remains flat this Friday, oscillating within the range of 1.3505-25. Yesterday the pair caught fresh wave of bids, having tested the region of 1.3570, on news headlines that the UK will remain in the EU customs union if it is necessary to avoid a ‘hard-Brexit’ scenario. However, upside rally of the pair was short-lived, as UK Prime Minister Theresa May refuted this news, stating that the UK would certainly leave the customs union and the EU. In addition, subdued dynamics of the US dollar also provide support to the pair at the last working day of the week. Looking ahead, today widespread market sentiment will continue to determine pair’s further direction, as both economic calendars don’t contain any relevant releases for this Friday.

The USD/CAD pair is trading on a positive note at the end of this week, having refreshed its intraday highs on the level of 1.2846, despite slight downside correction of the US dollar. The Loonie received notable bearish impetus in Asia on news that sides failed to reach any workable agreement during negotiations on NAFTA. And now the negotiations could be additionally slowed down, as Mexico gears up for a Presidential election, which could be another source of uncertainty, thereby putting additional pressure on the Canadian dollar. On the data front, today the US economic calendar won’t surprise investors with any relevant data reports, while the Canada will release important CPI and retail sales figures, which will able to bring some fresh trading opportunities during the NA session.

The USD/JPY pair continues to show positive dynamics for the fifth consecutive session, having refreshed its 4-month highs on the level of 111.00. The pair today received another bullish impetus during the Asian session, following weaker-than-expected Japanese inflation figures. Moreover, softer Japanese core CPI prints reaffirmed that the BoJ will continue to adhere to ultra-ease monetary policy, thus increasing divergence between the Fed and BoJ, which in turn additionally weighed on the Japanese currency. As for the data, nothing much is scheduled in the data calendar for this Friday, so broad market trend will remain as an exclusive driver for the pair during today’s trades.

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

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1743 R. 1.1865
USDJPY S. 109.78 R. 111.36
GBPUSD S. 1.3424 R. 1.3614
USDCHF S. 0.9965 R. 1.0059
AUDUSD S. 0.7468 R. 0.7570
NZDUSD S. 0.6830 R. 0.6960
USDCAD S. 1.2711 R. 1.2877

Your European ECN-broker,
Forex.ee

EEAnalytics · May 22, 2018, 10:08am

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

Tuesday, May 22nd

The EUR/USD pair follows broad market trend, having stalled its downside trend, however, remaining within striking distance of its half-year lows, marked on the level of 1.1717 on Monday. Today slight correction of the US dollar after its bullish rally against major competitors remains the main theme across the market, allowing major currencies to recover some ground. However, further growth of the pair looks limited, as the formation of a populist coalition in Italy increases concerns, especially in regards to the fiscal policy of the new government. Looking ahead, today nothing much is scheduled in both economic calendars, so investors will remain in anticipation of next important events - the FOMC minutes due for tomorrow and the ECB minutes, which will be released on Thursday.

The GBP/USD pair consolidates its positions after another retreat, oscillating within 1.3415-35 trading range. The pair remains under pressure of several bearish factors without any chances for recovery. Ongoing Brexit talks, which are not showing any progress, remain one of the key factors, limiting pair’s recovery. UK Prime Minister T. May is having a difficult time making a decision on Brexit, as on the one hand she is being pressured by EU leaders in Brussels, and on the other, by members of her own party, who adhere to “hard Brexit” scenario. In addition, broad demand for the US dollar also negatively affects the pair, as investors continue to price in a Fed rate hike next month. Now all markets’ attention shifts towards UK inflation hearings, which will be able to provide investors with fresh trading opportunities during European trades, while any headlines regarding Brexit will also have significant impact on the pair.

The USD/JPY pair stepped lower from its 4-month highs, marked on the level of 111.39 on Monday, having returned towards the level of 111.00. Recent upside trend of the pair is mostly attributed to the ongoing rally of the US dollar against its major rivals, triggered by expectations that the Fed will increase its interest rate by 25 bps next month. In addition, increased demand for risky assets is another bearish factor for the safe-haven yen. Recall, on Sunday Treasury Secretary S. Mnuchin said that the US will delay tariffs on Chinese imports, while sides are discussing details of a trade deal, which sparked notable spike of risk-on sentiments. However, it seems that US bulls took a breather on Monday, allowing the pair to retreat from its recent highs. Today the pair will continue to follow broad market sentiment, as the US economic calendar won’t offer anything interesting to investors on Tuesday.

The USD/CAD pair remains pressured despite broad demand for the greenback, having refreshed its intraday lows on level of 1.2764. It seems that optimist around negotiations on NAFTA continues to support the Canadian dollar. According to the latest news headlines, sides are interested in reaching a good deal on NAFTA. Moreover, ongoing growth of oil prices, which are currently trading in the region of its multi-year highs, also provides some support to the commodity-linked loonie. In the day ahead, the pair will continue to trace widespread market trend amid lack of any important releases, scheduled in the economic calendar for Tuesday.

Major events of the day:
UK Inflation Report Hearings – 12.00 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1688 R. 1.1848
USDJPY S. 110.42 R. 111.72
GBPUSD S. 1.3342 R. 1.3528
USDCHF S. 0.9948 R. 1.0014
AUDUSD S. 0.7473 R. 0.7643
NZDUSD S. 0.6858 R. 0.6994
USDCAD S. 1.2698 R. 1.2942

Your European ECN-broker,
Forex.ee

EEAnalytics · May 23, 2018, 10:16am

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

Wednesday, May 23rd

The EUR/USD pair resumed its downside trend, having refreshed 5-month lows in the vicinity of 1.1700 level, due to disappointing German data. Yesterday the pair tested the region of 1.1830, as US bulls eased pressure on the pair, having taken a brief breather. However, the major failed to keep its positive tone and came under bearish control due to uncertainty on the political field of Italy. Markets remain worried that new populist government’s fiscal policy will negatively affect the economy of Italy. Furthermore, weaker-than-expected German PMI figures, published this morning, also had a negative impact on the pair, forcing it to drop to its recent lows. Now all markets’ attention shifts towards the US data and FOMC meeting minutes, which will help the pair to determine its further direction during the NY trades.

The GBP/USD pair extends its bearish trend, having broken through the level of 1.3400 in early Europe. Yesterday the pair received another negative impetus on the back renewed risk-off sentiments, sparked by comments of the US President, who said that he is not pleased with current negotiations between the US and Chine. Moreover, typical cautiousness ahead of important UK inflation numbers also negatively affects the higher-yielding pound, especially taking into account recent series of weak UK data and dovish outcome of the BoE meeting. Besides the UK inflations figures, today investors will also pay attention to the US data and FOMC meeting minutes, which will be able spark some volatility during the NA session.

The USD/JPY pair accelerated its downside trend and refreshed its weekly lows in vicinity of 110.40 on the back of renewed risk-off sentiments. On Tuesday, President Trump delivered his speech, where he express dissatisfaction regarding recent trade talks between the United States and China, which was somewhat contradicting with broad market sentiment, especially taking into account recent comments of US Treasury Secretary S. Mnuchin, who intended to put a trade war “on hold”. Moreover, it is expected that slight cautiousness will continue to dominate the market ahead of FOMC meeting minutes, as markets are expecting to see fresh hints regarding a June Fed rate hike. Besides the protocols from the last Fed meeting, investors will also pay attention to the data from the US housing market, which are scheduled for the NA session.

The AUD/USD pair became a victim of broad risk aversions, having lost part of its recent gains. The pair fell to its intraday lows, located on the level of 0.7535, on the back of yesterday’s comments of the US President, who eased markets’ optimism over progress made so far in trade talks between the world’s two largest economies. Moreover, negative data from the Australian housing market also added some negative pressure on the pair during the Asian session. In the day ahead, Investors’ attention will remain focused on the US new home sales numbers and FOMC minutes, which will be released during the NA session.

Major events of the day:
Prelim. German Manufacturing PMI – 10.30 (GMT +3)
UK CPI – 11.30 (GMT +3)
US New Home Sales – 17.00 (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. 1.1715 R. 1.1861
USDJPY S. 110.56 R. 111.36
GBPUSD S. 1.3365 R. 1.3525
USDCHF S. 0.9872 R. 1.0018
AUDUSD S. 0.7543 R. 0.7623
NZDUSD S. 0.6886 R. 0.7002
USDCAD S. 1.2704 R. 1.2886

Your European ECN-broker,
Forex.ee

EEAnalytics · May 28, 2018, 9:53am

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

Monday, May 28th

The EUR/USD pair opened this week with a bullish gap of 35 pips and returned above the level of 1.1700. Today’s upside trend of the pair can be mainly explained by increased buying interest around the common currency, as the Five Star Movement and League failed to form a ruling coalition in Italy. Increased demand for the euro triggered retreat of the US dollar across the market. However, further gains of the pair look limited, as the greenback benefits from the easing tensions between the US and N. Korea. According to the latest tweets of the US President, the US team has arrived in North Korea to make arrangements for the Summit, thereby reviving hopes that the meeting between leaders will take place in June. On the data front, nothing much is scheduled in the data calendar for this Monday, so broad market trend will continue to determine pair’s further direction during this trading session.

The GBP/USD pair trades with a mild bullish bias this Monday, having bounced off the region of its 6-month lows, located near the level of 1.3300. Recent upside trend of the pair is mainly attributed to the subdued dynamics of the greenback, as US bulls seem to have taken another breather, allowing major currencies to correct higher against its American counterpart. However, further growth of the pair looks unlikely, as increased divergence between the Fed and BoE after streak of negative data from the UK economy continues to put pressure on the pound. Today the pair will experience pretty calm session, as both markets will remain closed due to national holidays, so widespread sentiment will remain the key determinant for the pair during this session.

The USD/JPY pair remains pressured at the start of the week, having refreshed it intraday lows in the vicinity of 109.40. One of the main drivers for the pair today is easing geopolitical tensions between the US and N. Korea in response to news headlines, saying that President Trump admits that the Summit with the leader of N. Korea is still possible. Recall, last Thursday Mr. Trump sent a letter to Kim Jong Un, cancelling the June meeting between the nations. Moreover, slight retreat of the US dollar against its major competitors also negatively affects the pair in the first working day of the week. Today we have absolutely empty economic data calendar, so broad market trend will remain as an exclusive driver for the pair on Monday.

The AUD/USD pair follows broad market trend this Monday, however, showing minor gains and keeping its positions in the region of 0.7570. Today downside correction of the US dollar remains the main underlying theme across the market, giving the major currencies another chance to recover the ground and Aussie is no exception. On the other hand, easing concerns over the US-N. Korean drama is limiting pair’s further gains. According to the latest D.Trumpt’s tweets, there is still a chance that the Summit between leaders will take place in June. Looking ahead, today the US data calendar won’t offer investors anything interesting, as the US market will remain closed in observance of Memorial Day, leaving the pair at the mercy of widespread market sentiment.

Major events of the day:
UK - Spring Bank Holiday
US - Memorial Day

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1587 R. 1.1765
USDJPY S. 108.81 R. 110.03
GBPUSD S. 1.3231 R. 1.3423
USDCHF S. 0.9870 R. 0.9952
AUDUSD S. 0.7511 R. 0.7609
NZDUSD S. 0.6886 R. 0.6954
USDCAD S. 1.2823 R. 1.3067

Your European ECN-broker,
Forex.ee