Price action over the past 24 hours has been limited even though we expected more from the major money markets now that the summer holidays are behind us. With traders coming back and more important events drawing closer the interest in the major instruments should be picking up quite quickly as the week progresses. The most important event of the week is undoubtedly the Non-Farm Payrolls report on Friday however tomorrow’s ECB decision and press conference will also increase volatility in the markets.
Yesterday’s price action was rather limited though with no significant changes in the outlook of the major currency pairs, even though we’ve had fresh news from Europe and the US. Several second-tier reports from different European countries and the Union as well ticked higher while the US Manufacturing report printed lower but there was a clear lack of conviction from traders that kept the Euro capped below the 1.1300 barrier.
However the outlook remains bullish at this time and from a technical perspective we should expect more short-term gains from the Single currency as soon as the 1.1300 resistance is broken. Today the focus will remain on Europe ahead of tomorrow’s ECB meeting as traders will look to position themselves ahead of Mario Draghi’s comments. The general sentiment is positive and with doubts on whether the Fed will hike rates this month the Euro should find enough support to climb higher.
The Cable remained bearish yesterday and has reached the 1.5300 level even though Mortgage Approvals ticked higher. It was the miss on the Manufacturing PMI report that kept the UK currency under pressure as the report missed its mark by a slight margin. Today and tomorrow the release of the Construction and Services PMI levels respectively are predicted to print in a bullish manner and that could allow for a correction to the upside.
With the US Dollar under risk from a possible delay in Fed’s schedule to raise rates in the coming months the Cable could see a swift reversal in the sharp decline it has suffered in the previous couple of weeks. The first level of resistance lies in the 1.5400 area and a successful breach of this ceiling should clear the path for the 1.5500 and 1.5600 areas in quick succession.
Economic Calendar
Recommended Content
Editors’ Picks
EUR/USD climbs to 10-day highs above 1.0700
EUR/USD gained traction and rose to its highest level in over a week above 1.0700 in the American session on Tuesday. The renewed US Dollar weakness following the disappointing PMI data helps the pair stretch higher.
GBP/USD extends recovery beyond 1.2400 on broad USD weakness
GBP/USD gathered bullish momentum and extended its daily rebound toward 1.2450 in the second half of the day. The US Dollar came under heavy selling pressure after weaker-than-forecast PMI data and fueled the pair's rally.
Gold rebounds to $2,320 as US yields turn south
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
Germany’s economic come back
Germany is the sick man of Europe no more. Thanks to its service sector, it now appears that it will exit recession, and the economic future could be bright. The PMI data for April surprised on the upside for Germany, led by the service sector.