Nobody has a clear idea of where the economies of the world are heading now - and which economy will recover first. Read the comments of the pundits, and you will find only their searching for reasons why the dollar recovered yesterday, or why the euro surged before. No wonder, in a zero interest rate world club, where the so often cited "carry trade" and "risk appetite" is losing its zeal. The carry trade has found its grave already, and the every so often cited term, risk appetite, is sounding slowly but surely a little dull. So let us concentrate on the pure market and technical factors for the time being, before having more facts for the simplest conclusion: The world economy will recover, and the first to show that in real figures will be America, paying her debts by inflation and therefore depressing the USD. But meanwhile, the market and technical factors speak for an upward correction in the Greenbacks market, a see-saw we’ve been experiencing for months now.
Accordingly, we put our projected trading bands a little higher for the USD in today’s trading, as explained below in the major pairs. The U.S. producer price index for April will be of interest today, whether showing more deflation influence or not, due at 14:30 CET. Expected is a slight increase - any further contraction in the index will have a supporting effect on the USD.
Intraday Market Outlook for Day Traders
EUR / USD
Recovering from its intermediate support zone around 1.3540, the pair is currently trading at 1.3610 in early European trading. We do not see much more substance in this recovery mood, and expect the market to fall back from a level around 1.3630, leading to prices at approximately 1.3550 today.
GBP / USD
In unusual low volatility, cable is currently trading at 1.5140 this European morning, continuing its sideways move that started in Asian trading. We expect this sideways move to remain today, with a slight selling tone, limited on the upside at 1.5180 and on the downside at 1.5050.
USD / CHF
The dollar continues to hover above the 1.1050 support against the Swiss franc in a now directionless market, currently priced at 1.1070 in early European trading. We see some recovery mood emerging today, leading to the 1.1150 mark.
USD / JPY
We do not see much change in this very low volatility market today, with the dollar trading for hours around the 95.50 level, currently priced at 95.40. Due to the lack of direction, we would stand aside from this market today.
Accordingly, we put our projected trading bands a little higher for the USD in today’s trading, as explained below in the major pairs. The U.S. producer price index for April will be of interest today, whether showing more deflation influence or not, due at 14:30 CET. Expected is a slight increase - any further contraction in the index will have a supporting effect on the USD.
Intraday Market Outlook for Day Traders
EUR / USD
Recovering from its intermediate support zone around 1.3540, the pair is currently trading at 1.3610 in early European trading. We do not see much more substance in this recovery mood, and expect the market to fall back from a level around 1.3630, leading to prices at approximately 1.3550 today.
GBP / USD
In unusual low volatility, cable is currently trading at 1.5140 this European morning, continuing its sideways move that started in Asian trading. We expect this sideways move to remain today, with a slight selling tone, limited on the upside at 1.5180 and on the downside at 1.5050.
USD / CHF
The dollar continues to hover above the 1.1050 support against the Swiss franc in a now directionless market, currently priced at 1.1070 in early European trading. We see some recovery mood emerging today, leading to the 1.1150 mark.
USD / JPY
We do not see much change in this very low volatility market today, with the dollar trading for hours around the 95.50 level, currently priced at 95.40. Due to the lack of direction, we would stand aside from this market today.
