US dollar opened the week under moderate bearish pressure following the last week's sharp selloff. On the past week USD index formed a strong bearish candle, but failed to form a "bearish engulfing". It confirms that the current USD decline is temporary. This week the market attention will be focused on the US inflation data on Tuesday (12:30 GMT). CPI is expected to come at 0.1% in February - better than in January, but not enough to inspire a fresh USD rally.
EUR/USD recovered above 1.0900 on Monday. Markets await a bunch of PMI indices to be released on Tuesday. The figures are expected to confirm increased optimism due to QE launch in March. If it happens, we'll see EUR/USD recovered up to 1.1500 in the coming days. GBP/USD spent the past week in an extened 1.4635/1.5160 range. Fed and BOE behaved in a similar way, pointing to increased economic risks and delaying rate hike expectations. However, the Fed is still expected to become the first one to raise rates. UK is also expected to release inflation figures tomorrow. Cable clearly remains offered below 1.5000. Break below 1.4800 would increased the pace of sales.
USD/JPY formed a bearish engulfing candle on the past week, descending from 122.00 yen. We turned bearish for the pair following the Fed's meeting. Daily close below 119.80 would trigger a decline to 118.00. AUD/USD and NZD/USD have also gapped higher on Monday. Watch China's HSBC manufacturing PMI tonight - reading above 50 will push the commodity currencies higher from the current levels.
EUR/USD recovered above 1.0900 on Monday. Markets await a bunch of PMI indices to be released on Tuesday. The figures are expected to confirm increased optimism due to QE launch in March. If it happens, we'll see EUR/USD recovered up to 1.1500 in the coming days. GBP/USD spent the past week in an extened 1.4635/1.5160 range. Fed and BOE behaved in a similar way, pointing to increased economic risks and delaying rate hike expectations. However, the Fed is still expected to become the first one to raise rates. UK is also expected to release inflation figures tomorrow. Cable clearly remains offered below 1.5000. Break below 1.4800 would increased the pace of sales.
USD/JPY formed a bearish engulfing candle on the past week, descending from 122.00 yen. We turned bearish for the pair following the Fed's meeting. Daily close below 119.80 would trigger a decline to 118.00. AUD/USD and NZD/USD have also gapped higher on Monday. Watch China's HSBC manufacturing PMI tonight - reading above 50 will push the commodity currencies higher from the current levels.
Recommended Content
Editors’ Picks
EUR/USD declines below 1.0700 as USD recovery continues
EUR/USD lost its traction and declined below 1.0700 after spending the first half of the day in a tight channel. The US Dollar extends its recovery following the strong Unit Labor Costs data and weighs on the pair ahead of Friday's jobs report.
GBP/USD struggles to hold above 1.2500
GBP/USD turned south and dropped below 1.2500 in the American session on Thursday. The US Dollar continues to push higher following the Fed-inspired decline on Wednesday and doesn't allow the pair to regain its traction.
Gold slumps below $2,300 as US yields rebound
Gold extended its daily slide and dropped below $2,290 in the second half of the day on Thursday. The benchmark 10-year US Treasury bond yield erased its daily losses after US data, causing XAU/USD to stretch lower ahead of Friday's US jobs data.
Top 3 Price Prediction BTC, ETH, XRP: Altcoins to pump once BTC bottoms out, slow grind up for now
Bitcoin reclaiming above $59,200 would hint that BTC has already bottomed out, setting the tone for a run north. Ethereum holding above $2,900 keeps a bullish reversal pattern viable despite falling momentum. Ripple coils up for a move north as XRP bulls defend $0.5000.
Happy Apple day
Apple is due to report Q1 results today after the bell. Expectations are soft given that Apple’s Chinese business got a major hit in Q1 as competitors increased their market share against the giant Apple.