EUR/USD
With little in the way of news flow, particularly as the European markets are closed, EUR came off its overnight highs to test its session low at 1.3802. With little fundamental to lead the move the retracement was observed after its session high of 1.3831 was met but not broken. Looking ahead to the rest of the week, participants will get to digest the release of Eurozone PMI’s on Wednesday, and German IFO expectations on Thursday.GBP/USD
Similar to its peers, GBP/USD has remained muted with the Easter holiday weekend leading to very light volumes. After breaking the psychological handle of 1.6800 overnight, the pair came off its highs, now moving to the downside, falling back below the aforementioned handle. Looking ahead the participants will get to digest the release of the BoE minutes on Wednesday and the UK retail sales on Friday.USD/JPY
Overnight, JPY weakened after the release of poorer-than-expected Japanese trade balance, - 1446.3bln vs. Exp. -1080.9bln (Prev. -800.3bln, Rev. -802.5bln), showed the trade deficit widened more than forecast last month. Overnight some news flow out of Japan suggested Japan's PM Abe's government plans to shake up the GPIF by replacing several key advisors in a sign that the leader wants public funds to invest more aggressively which could be of importance moving ahead. In a light session there was little else to give direction to the pair, however it came off its session highs, moving to trade generally sideways. Looking ahead the markets will see the release of US PMIs, weekly jobs reports and the BoJ deputy governor Nakaso talking in Kyoto on Wednesday.
Recommended Content
Editors’ Picks
EUR/USD flirts with daily tops near 1.0730
The continuation of the selling pressure in the Greenback now lends further oxygen to the risk complex, encouraging EUR/USD to revisit the area of daily highs near 1.0730.
USD/JPY looks stable around 156.50 as suspicious intervention lingers
USD/JPY remains well on the defensive in the mid-156.00s albeit off daily lows, as market participants continue to digest the still-unconfirmed FX intervention by the Japanese MoF earlier in the Asian session.
Gold holds steady above $2,330 to start the week
Gold fluctuates in a relatively tight channel above $2,330 on Monday. The benchmark 10-year US Treasury bond yield corrects lower and helps XAU/USD limit its losses ahead of this week's key Fed policy meeting.
Week Ahead: Bitcoin could surprise investors this week Premium
Two main macroeconomic events this week could attempt to sway the crypto markets. Bitcoin (BTC), which showed strength last week, has slipped into a short-term consolidation.
Five Fundamentals for the week: Fed fears, Nonfarm Payrolls, Middle East promise an explosive week Premium
Higher inflation is set to push Fed Chair Powell and his colleagues to a hawkish decision. Nonfarm Payrolls are set to rock markets, but the ISM Services PMI released immediately afterward could steal the show.