US Dollar index remains under pressure in the middle of the week, but holds above the Tuesday’s low. Watch the Fed’s member Dennis Lockhart speech on Thursday. In early March he made some hawkish comments. Also watch US unemployment claims on Thursday. Markets await the Friday’s final Q4 GDP – figures are expected to be revised up. That could revive USD demand on the market.
Meanwhile, EUR/USD is flirting with the 1.1000 hurdle, trying to fix above the 4-month trend resistance. Market sentiment towards the euro remains quite positive amid better-than-expected figures we’ve seen this week (PMIs, German business climate). On Thursday watch the German consumer sentiment index by Gfk – more positive news could follow. Next bullish target - 1.1100. Break higher would open the way to a stronger resistance at 1.1500.
GBP/USD is struggling to recover above 1.4900. Market volatility remains high. Next resistance - 1.4950. Anyway, we remain bearish below the 1.5000 handle. On Thursday don’t miss UK retail sales at 9:30 GMT (forecast – upbeat). US will also release BOE Financial stability report tomorrow.
AUD/USD bulls weakened on Wednesday: the pair rolled back below 0.7900. A daily fix above 0.7915 could become a strong bullish signal, while a decisive pullback – a bearish one. We’re waiting for clear signals.
USD/JPY still holds above the 100-day MA at 119.20 as we write. We target 118 yen in the coming sessions. Japan will release a bunch of data on Friday night – don’t miss CPI and retail sales.
Meanwhile, EUR/USD is flirting with the 1.1000 hurdle, trying to fix above the 4-month trend resistance. Market sentiment towards the euro remains quite positive amid better-than-expected figures we’ve seen this week (PMIs, German business climate). On Thursday watch the German consumer sentiment index by Gfk – more positive news could follow. Next bullish target - 1.1100. Break higher would open the way to a stronger resistance at 1.1500.
GBP/USD is struggling to recover above 1.4900. Market volatility remains high. Next resistance - 1.4950. Anyway, we remain bearish below the 1.5000 handle. On Thursday don’t miss UK retail sales at 9:30 GMT (forecast – upbeat). US will also release BOE Financial stability report tomorrow.
AUD/USD bulls weakened on Wednesday: the pair rolled back below 0.7900. A daily fix above 0.7915 could become a strong bullish signal, while a decisive pullback – a bearish one. We’re waiting for clear signals.
USD/JPY still holds above the 100-day MA at 119.20 as we write. We target 118 yen in the coming sessions. Japan will release a bunch of data on Friday night – don’t miss CPI and retail sales.
Recommended Content
Editors’ Picks
EUR/USD retreats below 1.0700 as USD rebounds
EUR/USD lost its traction and retreated slightly below 1.0700 in the American session, erasing its daily gains in the process. Following a bearish opening, the US Dollar holds its ground and limits the pair's upside ahead of the Fed policy meeting later this week.
USD/JPY recovers toward 157.00 following suspected intervention
USD/JPY recovers ground and trades above 156.50 after sliding to 154.50 on what seemed like a Japanese FX intervention. Later this week, the Federal Reserve's policy decisions and US employment data could trigger the next big action.
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.