Reduced volatility and limited price action in the currency markets over the past 24 hours after the steep losses we saw earlier in the week. It seems that the shift in momentum has run its course for the time being and yesterday the major instruments we monitor in our reports remain pretty much unchanged.
However this is not to suggest that we’re done for the week as today we could expect an uptick in volatility and fresh price action again as the calendar offers a few opportunities for traders to take advantage of the scheduled reports. The Manufacturing and Services PMI reports from the Euro-zone and the Retail Sales report from the UK could and should attract investors’ attention.
With the two major European currencies treading water over the past 24 hours this might be an opportunity to pick up some pace again on the back of the upcoming figures. The Euro could stand to benefit from any sign of improvement in the PMI levels while a retreat in the reported figures could weigh down on the currency’s outlook.
The Euro traded either side of the 1.1100 level yesterday after having dropped more than 300 pips since the beginning of the week. Any signs of better than expected results could send the Single currency above the 1.1200 again as traders will look to cash out any recent short-term gains while a renewed bearish bias on the back of a disappointing PMI report could drive the Euro to test the 1.1000 area.
The Cable at the same time looks poised to gain back some of the ground it had lost over the past couple of days if it finds enough support after the release of the Retail Sales report. Expectations are set for an uptick in consumer demand and that would bode well for the UK currency that received some support from yesterday’s BoE minutes. So a spark of bullish attention should allow the Cable to look for the previous 1.5680 highs and possibly higher towards the 1.5750 area.
Economic Calendar
Recommended Content
Editors’ Picks
AUD/USD extends gains due to improved risk appetite
The Australian Dollar maintained its winning streak for the fourth consecutive session on Monday, buoyed by a hawkish sentiment surrounding the Reserve Bank of Australia. This optimism bolsters the strength of the Aussie Dollar, providing support to the AUD/USD pair.
USD/JPY snaps three-day losing streak above 153.50, Yellen counsels caution on currency intervention
The USD/JPY pair snap a three-day losing streak during the Asian trading hours on Monday. The uptick of the pair is bolstered by the modest rebound of the US Dollar and US Treasury Secretary Janet Yellen’s comments on potential Japanese interventions last week.
Gold holds below $2,300, Fedspeak eyed
Gold price loses its recovery momentum around $2,295 on Monday during the early Asian session. Investors will keep an eye on Fedspeaks this week, along with the first reading of the US Michigan Consumer Sentiment Index for May on Friday.
Bitcoin Cash could become a Cardano partnerchain as 66% of 11.3K voters say “Aye”
Bitcoin Cash is the current mania in the Cardano ecosystem following a proposal by the network’s executive inviting the public to vote on X, about a possible integration.
Week ahead: BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.