EUR/USD spiked to $1.2760 as German import prices picked up, while US durable goods orders declined. However, then euro returned lower as US consumer confidence jumped to the highest levels since late 2007. Support is at $1.2720 (200-hour MA) and $1.2700. On Wednesday the pair will be more consolidative ahead of the Fed’s meeting results at 18:00 GMT. Further dynamics will depend on the Fed. Below $1.2700 at least euro will fall to $1.2630. Still, if the Fed doesn’t change its forward guidance to more hawkish, EUR/USD will test $1.2800. In this latter case USD/CAD will slide to 1.1100.
GBP/USD extends the recovery on Monday, but still remains below our major resistance at 1.6200. As we have already mentioned yesterday, price fix above here would confirm a short-term inverse head-and-shoulders with a target at $1.6500. However, the pattern lacks confirmation for now. Great Britain is scheduled to release Net Lending to Individuals data at 8:30 GMT., but the market will mostly be driven by FOMC tomorrow.
USD/JPY keeps on consolidating in the 107.50 / 108.30 range on Tuesday. We hold a long position with a stop order at 107.50. Japan will release preliminary industrial production figures tomorrow (+2.3% exp. versus prior -1.9%).
Volatility in NZD/USD will likely increase tomorrow: watch ANZ business confidence at midnight. In US session on Wednesday RBNZ policy decision will come out at 20:00 GMT – two hours after the FOMC meeting. Downside risks for the pair prevail.
GBP/USD extends the recovery on Monday, but still remains below our major resistance at 1.6200. As we have already mentioned yesterday, price fix above here would confirm a short-term inverse head-and-shoulders with a target at $1.6500. However, the pattern lacks confirmation for now. Great Britain is scheduled to release Net Lending to Individuals data at 8:30 GMT., but the market will mostly be driven by FOMC tomorrow.
USD/JPY keeps on consolidating in the 107.50 / 108.30 range on Tuesday. We hold a long position with a stop order at 107.50. Japan will release preliminary industrial production figures tomorrow (+2.3% exp. versus prior -1.9%).
Volatility in NZD/USD will likely increase tomorrow: watch ANZ business confidence at midnight. In US session on Wednesday RBNZ policy decision will come out at 20:00 GMT – two hours after the FOMC meeting. Downside risks for the pair prevail.
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
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.