The Swiss franc held steady against the dollar ahead of the first Swiss National Bank (SNB) interest rate decision of the year. The bank is expected to leave interest rates unchanged at -0.75% and possibly hint to a possible hike later this year. Analysts also expect it to upgrade its forecast for the economy’s growth since recent numbers have been better than expected. For example, the country’s retail sales and manufacturing and services PMI have been relatively strong. The unemployment rate has remained substantially low amid the pandemic.
The price of crude oil rose during the American session as the market reacted to the ongoing events at Suez Canal. A big ship owned by Evergreen, a Taiwanese company, has blocked the canal, making it impossible for other ships to cross. Because of its size, it is almost impossible to predict when the passage will be cleared. This could affect oil supply to many countries since most ships from the Middle East pass through the canal. Data by the cshowed that the number of oil inventories in the United States rose by more than 1.9 million barrels last week.
The US dollar held steady as investors focused on the testimony by Jerome Powell. The first day, he talked about the uneven recovery and the need for low-interest rates and quantitative easing. The currency also reacted to the flash manufacturing and services PMI numbers. According to Markit, the manufacturing PMI rose from 58.6 in February to 59.0 in March while the services PMI rose from 59.8 to 60.0. Later today, the US will publish the final Q4 GDP estimates while some Fed officials like Charles Evans and Richard Clarida will talk.
XTI/USD
The XTI/USD pair rose to a high of 61.25. On the hourly chart, the pair is at the same level as the 25-day and 15-day weighted moving averages. It is also slightly above the important support at 60 while the Relative Strength Index (RSI) has moved below the overbought level of 70. The average true range (ATR) has also declined slightly. Therefore, the pair may remain below the current level and then bounce back to the important resistance at 62.
EUR/USD
The EUR/USD pair declined to a multi-month low of 1.1815 in the overnight session. On the four-hour chart, the pair has moved below the short and longer term moving averages while the signal and histogram of the MACD have moved below the neutral level. The Relative Strength Index (RSI) has moved to the oversold level for the first time since early this month. The pair will likely bounce back today as bulls rush to buy the dip.
USD/CHF
The USD/CHF pair rose to a high of 0.9370. On the four-hour chart, this price is slightly below the important resistance at 0.9374. The price is above the short and longer term moving averages while the Relative Strength Index (RSI) has been rising. The Relative Vigor Index (RVI) has also risen. Therefore, the pair may keep rising as the market attempts to move past the resistance at 0.9374.
General Risk Warning for FX & CFD Trading. FX & CFDs are leveraged products. Trading in FX & CFDs related to foreign exchange, commodities, financial indices and other underlying variables, carry a high level of risk and can result in the loss of all of your investment. As such, FX & CFDs may not be appropriate for all investors. You should not invest money that you cannot afford to lose. Before deciding to trade, you should become aware of all the risks associated with FX & CFD trading, and seek advice from an independent and suitably licensed financial advisor. Under no circumstances shall we have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to FX or CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever.
Recommended Content
Editors’ Picks
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
Google starts indexing Bitcoin addresses
Bitcoin address data is live on Google search results after users realized on Thursday that the tech giant started indexing Bitcoin blockchain data. However, mixed reactions have followed the tech giant's reversed stance on the cryptocurrency.
A Hollywood ending for fourth quarter GDP
The latest revisions put Q4 GDP at 3.4%, the second fastest quarterly growth rate in two years. Much of the upside was attributable to stronger consumer spending, yet fresh profits data affirmed it was a good quarter for the bottom line as well with profits up by the most since the Q2-2022.