Europe FX Handover – 21st March 2019

Dollar pared losses following yesterday's dovish FOMC meeting, with EUR/USD easing back below 1.14 handle after almost reaching 1.1450 the day before.
GBP/USD hit its lowest level on the week despite more good news from UK economy as retail sales unexpectedly climbed 0.4% m/m.
Fears over a hard Brexit intensified as concerns were raised that the EU might not grant an extension to June 30 unless May's deal was passed in parliament.
Swiss National Bank held benchmark interest rates unchanged at -0.75%
Norges Bank hiked rates by 25 basis points as expected but signalled another 0.25% hike for the 2nd half of 2019 and 2 more increases in 2020. It upgraded its growth forecasts and 2019 core CPI. EUR/NOK slumped from around 9.6900 to below 9.5900.
Bank of England policy decision was a damp squib event due to Brexit. The BoE said monetary policy in response to Brexit, whatever form it takes, will not be automatic and could be in either direction.
Despite the dovish Fed, US index futures pointed to a downbeat open on Wall Street, after a lacklustre EU session for stocks.

Fawad Razaqzada TradingCandles.com

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Fawad Razaqzada

TradingCandles.com

Experience Fawad is an experienced analyst and economist having been involved in the financial markets since 2010 working for leading global FX, CFD and Spread Betting brokerages, most recently at FOREX.com and City Index.

EUR/USD trims gains, hovers around 1.1900 post-US data

EUR/USD trades slightly on the back foot around the 1.1900 region in a context dominated by the resurgence of some buying interest around the US Dollar on turnaround Tuesday. Looking at the US docket, Retail Sales disappointed expectations in December, while the ADP 4-Week Average came in at 6.5K.

GBP/USD comes under pressure near 1.3680

The better tone in the Greenback hurts the risk-linked complex on Tuesday, prompting GBP/USD to set aside two consecutive days of gains and trade slightly on the defensive below the 1.3700 mark. Investors, in the meantime, keep their attention on key UK data due later in the week.

Gold loses some traction, still above $5,000

Gold faces some selling pressure on Tuesday, surrendering part of its recent two-day advance although managing to keep the trade above the $5,000 mark per troy ounce. The daily pullback in the precious metal comes in response to the modest rebound in the US Dollar, while declining US Treasury yields across the curve seem to limit the downside.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.