General market theme
Price action was limited at the start of the week in the major instruments we monitor in our daily report and even though we’re going through a week with a number of important news and reports traders preferred to remain cautious over the past 24 hours. Nevertheless starting we’re bound to see more volatility as tier-1 economic reports and developments are coming our way and we could be seeing a correction in the main trends we’ve been looking at over the past couple of weeks. The focus today will be on the Pound with the release of the Services PMI figures and the US Dollar as the Non-Manufacturing ISM report is also scheduled for release.

Price action highlights
The Euro traded sideways over the past 24 hours trading just shy of the 1.1400 level and it is clear that the momentum behind the previous uptrend has diminished. This development could hint towards a correction as traders realize that the bearish views regarding the Dollar’s outlook might be overstated and if profit-taking kicks in we could see the Single currency testing the 1.1300 support at some point. Today’s ISM report is expected to print in favor of the Dollar so this could be one of the reasons to trigger a correction in the overbought Euro.

The Cable was on the rise yesterday after a better than expected Construction PMI reading that sent the rate above the 1.4300 resistance level. Later in the day the Pound corrected lower but the bias might be on the upside today as we expect the release of the Services PMI report and expectations are set for a bullish reading. The sentiment in the bias remains bearish ahead of a potential Brexit but on a short-term horizon the Pound could look towards the 1.4400 level if the PMI report prints as strong as expected.

Focus of the day
As we mentioned in our opening remarks today the focus will mainly be on the Pound early in the morning as the release of the Services PMI report could drive volatility higher and later in the day traders will want to see how the ISM reading from the US prints as the Dollar could be in for a correction to the upside. The Eurozone Retail Sales will be released between the two aforementioned reports but we believe that traders will mostly be focused on the US ISM reading later in the day regarding Euro’s price action.

Economic Calendar

 


 

Past performance is not indicative of future results. Trading forex, CFDs and equites carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade any such leveraged products you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading on margin, and seek advice from an independent financial advisor if you have any doubts. The information provided by InvestingBetter.com should not be relied upon as a substitute for extensive independent research which should be performed before making your investment decisions. InvestingBetter.com are merely providing this information for your general information. The information and opinions presented do not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision and should tailor the trade size and leverage of their trading to their personal risk appetite. InvestingBetter.com and/or its owners will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained on InvestingBetter.com. InvestingBetter.com does not render investment, legal, accounting, tax, or other professional advice. If investment, legal, tax, or other expert assistance is required, the services of a competent professional should be sought.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD steady below 1.0800 after US PCE meets expectations

EUR/USD steady below 1.0800 after US PCE meets expectations

EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips.  Fed Chair Jerome Powell set to speak ahead of the weekly close.

EUR/USD News

GBP/USD hovers around 1.2620 in dull trading

GBP/USD hovers around 1.2620 in dull trading

GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.

GBP/USD News

Gold price sits at all-time highs above $2,230

Gold price sits at all-time highs above $2,230

Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.

Gold News

Jito price could hit $6 as JTO coils up inside this bullish pattern

Jito price could hit $6 as JTO coils up inside this bullish pattern

Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.

Read more

Key events in developed markets next week

Key events in developed markets next week

Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.

Read more

Majors

Cryptocurrencies

Signatures