The U.S. trade deficit published yesterday came as a surprise, expanding again in more than half a year of contraction. A closer look at the numbers reveals the reason, it was exports shrinking more dramatically than imports which caused the widening. But that is not a new development, both elements still point to a global and weak U.S. economy. However, it has put for now a lid on the dollar‘s market performance, although an upward correction is long overdue in this oversold market.
Meanwhile, the EUR / USD pair rose to its long-term resistance point, still demonstrating the euro‘s strength in this European morning trading. Although we expect corrective moves, this strength could well show endurance over the next days, considering the prospect of rising bond markets in the Eurozone because of the ECB‘s intervention there.
For today‘s trading, we expect a sideways market in the majors pairs, in other words, the dollar will consolidate further its lower levels without much more downside risk for the moment. Note the U.S. retail sales data for April scheduled for today, at 14:30 CET, expected more or less unchanged on very low growth levels.
Intraday Market Outlook for Day Traders
EUR / USD
Heavily overbought and bumping into long-term resistance now around the 1.3700 level, the pair is in an upmood again this European morning, currently trading at 1.3680. We expect the upmove to lose momentum soon and see down corrections to come, to levels around 1.3610.
GBP / USD
Retreating from resistance at 1.5350, cable is currently priced at 1.5270 in early European trading. We do not expect much upside potential today and rather project a downmove to the 1.5200 level.
USD / CHF
In deep oversold condition against the Swiss franc, the dollar is currently trading at 1.1020. We see that level more or less holding in today’s trading and expect recovery moves from there towards the 1.1100 mark.
USD / JPY
The dollar is consolidating its lower levels against the yen in early European trading and is currently priced at 96.25. We expect the sideways trend, established between 96.60 and 95.80, to continue today, in a market characterized by low volatility.
Meanwhile, the EUR / USD pair rose to its long-term resistance point, still demonstrating the euro‘s strength in this European morning trading. Although we expect corrective moves, this strength could well show endurance over the next days, considering the prospect of rising bond markets in the Eurozone because of the ECB‘s intervention there.
For today‘s trading, we expect a sideways market in the majors pairs, in other words, the dollar will consolidate further its lower levels without much more downside risk for the moment. Note the U.S. retail sales data for April scheduled for today, at 14:30 CET, expected more or less unchanged on very low growth levels.
Intraday Market Outlook for Day Traders
EUR / USD
Heavily overbought and bumping into long-term resistance now around the 1.3700 level, the pair is in an upmood again this European morning, currently trading at 1.3680. We expect the upmove to lose momentum soon and see down corrections to come, to levels around 1.3610.
GBP / USD
Retreating from resistance at 1.5350, cable is currently priced at 1.5270 in early European trading. We do not expect much upside potential today and rather project a downmove to the 1.5200 level.
USD / CHF
In deep oversold condition against the Swiss franc, the dollar is currently trading at 1.1020. We see that level more or less holding in today’s trading and expect recovery moves from there towards the 1.1100 mark.
USD / JPY
The dollar is consolidating its lower levels against the yen in early European trading and is currently priced at 96.25. We expect the sideways trend, established between 96.60 and 95.80, to continue today, in a market characterized by low volatility.
