Alpesh Patel
InvestingBetter.com
General market theme
Diverging price action at the beginning of the week for the major instruments we monitor in our daily report as the Euro and Gold continued trading with limited volatility while Gable and the FTSE 100 illustrated quite an active trading behavior. In a day with nothing in terms of news investors took their cue from the Doha meeting over the weekend having to do with oil production and whether there will be a cap in the production levels. With oil being one of the key commodities any major developments affect the risk appetite in the currency markets as well. Today the focus will primarily be on the Euro though with the release of the ZEW Survey being the most market-moving event of the day.
Price action highlights
The Single European currency edged to the upside yesterday and crawled its way above the 1.1300 level to build a basis of support just above this key area. With the ZEW Survey expected to print in a steady manner the Euro could stand to benefit more today while the Dollar remains in the backseat and the next short-term target for the currency lies around the 1.1350 to 1.1400 area. With the ECB meeting on Thursday investors will look to be cautious with the way the Euro will trade in the next couple of days leading up to the meeting so we don’t expect any radical volatility in its price action for the time being.
The Cable though was rather expressive yesterday after the Doha meeting over the weekend and we know how responsive the UK currency can be to risk-on events. The Pound rallied to the upside and made its way to the 1.4300 level and this morning the momentum seems strong and one could suppose that more gains are on the cards. However we need to consider two things: first, the Pound is trading near its recent highs around the 1.4350 area and secondly, the UK employment and Retail Sales reports are due this week and expectations made word for a bearish release in both metrics. Hence any current momentum in the Pound might be reversed pretty quickly as we progress in the week so caution is advised.
Focus of the day
Like we mentioned above today investors’ focus will be on the Euro and the release of the ZEW Survey figures, the report is expected to show a steady level of business confidence in Germany and the Eurozone and that should help the Euro to extend its mini rally to the upside. Other than that the rest of the day only holds tier-3 reports and events that will not have any effect on the price action of the instruments we monitor.
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
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 struggles around $2,325 despite broad US Dollar’s weakness
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.