The world‘s oldest central bank, Great Britain's BoE, restrains itself much more from public appearance between the monthly protocols in contrast to the U.S. Fed and Europe‘s ECB. Whether this is a good approach or not, it lends the pound more volatility against the dollar and the euro because there is more time left for speculation to build up. Recently the GBP was riding one of its typical three- to four-day cycles, substantially up this time against the USD and EUR. This is amazing, considering the fact that the three central banks must solve the same problems to support their respective economies. Also, they have come to the same conclusions: lowering interest rates to near zero along with "quantitative easing" in Washington and London while Frankfurt is considering "special actions" - in short, printing money as much as they can. Right now, the pound may continue its downward correction, starting with the dollar and, to a lesser extent against the euro, where a consolidation has just begun.
In the major pairs for today‘s trading, we expect a consolidation in the form of a sideways market for the USD after its strength last week. Below are our intraday projections for the specific trading ranges. Note that the U.S. leading indicators are due for March at 16:00 CET.
Intraday Market Outlook for Day Traders
EUR / USD
The pair continued its downward move in early European trading and is currently priced at 1.2980. The market is heavily oversold by now, hovering just above its longer-term support zone at 1.2950. We expect this level to hold today, and see recovery moves first up to 1.3050, and from there to the 1.3100 area.
GBP / USD
Cable rapidly lost further ground in this European morning, continuing its downward correction against the dollar. Currently trading at 1.4575, we expect a consolidation to set in, in a trading range between approximately 1.4500 and 1.4700.
USD / CHF
The dollar is quietly consolidating its last week’s gains versus the Swiss franc and is trading now at 1.1690. We expect this consolidation to continue in today’s trading, with the upside limited at 1.1720 and the downside at 1.1650.
USD / JPY
In Asian trading, the dollar tried to break the 98.70 support against the yen, unsuccessfully so far, and is priced now at 98.85. We expect that support to hold further in today’s trading and see some upward moves but limited to 99.20 on the upside.
In the major pairs for today‘s trading, we expect a consolidation in the form of a sideways market for the USD after its strength last week. Below are our intraday projections for the specific trading ranges. Note that the U.S. leading indicators are due for March at 16:00 CET.
Intraday Market Outlook for Day Traders
EUR / USD
The pair continued its downward move in early European trading and is currently priced at 1.2980. The market is heavily oversold by now, hovering just above its longer-term support zone at 1.2950. We expect this level to hold today, and see recovery moves first up to 1.3050, and from there to the 1.3100 area.
GBP / USD
Cable rapidly lost further ground in this European morning, continuing its downward correction against the dollar. Currently trading at 1.4575, we expect a consolidation to set in, in a trading range between approximately 1.4500 and 1.4700.
USD / CHF
The dollar is quietly consolidating its last week’s gains versus the Swiss franc and is trading now at 1.1690. We expect this consolidation to continue in today’s trading, with the upside limited at 1.1720 and the downside at 1.1650.
USD / JPY
In Asian trading, the dollar tried to break the 98.70 support against the yen, unsuccessfully so far, and is priced now at 98.85. We expect that support to hold further in today’s trading and see some upward moves but limited to 99.20 on the upside.
