EUR/USD stays focused on 1.1980 – UOB

Pablo Piovano FXStreet

In opinion of FX Strategists at UOB Group, EUR/USD is seen under pressure while below the 1.1980 level in the next weeks.

Key Quotes

24-hour view: “Yesterday, we were of the view that the rebound in EUR ‘has room to extend but any advance is likely limited to a test of 1.1940’. While EUR advanced as expected, it did not quite test 1.1940 (high has been 1.1929). The bias still appears to be titled to the upside but while a break of 1.1940 would not be surprising, the strong resistance at 1.1980 is unlikely to come into the picture. Support is at 1.1900 followed by 1.1875.”

Next 1-3 weeks: “We have held a negative view in EUR since the start of the month. In our latest narrative from yesterday (09 Mar, spot at 1.1850), we highlighted that ‘we continue to expect EUR to move lower to 1.1800’. EUR subsequently dropped to 1.1834 before staging a robust rebound. Shorter-term momentum is beginning to wane but the overall negative phase is intact unless there is a break of 1.1980 (no change in ‘strong resistance’ level). In view of the oversold conditions, EUR could not afford to dither or the odds for a move to 1.1800 would diminish quickly.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

AUD/USD edges higher as hot CPI inflation and hawkish RBA lift rate hike bets

The AUD/USD pair gathers strength to near 0.7035 during the Asian trading hours on Friday. The Australian Dollar edges higher against the US Dollar as hotter Australian CPI inflation data has bolstered expectations of Reserve Bank of Australia rate hikes.

USD/JPY meets support near 157.00

USD/JPY retreats for the third consecutive day on Friday, revisiting the 157.00 region before attempting some recovery as investors continue to assess the latest BoJ meeting, where the central bank left rates unchanged, as widely anticipated.

Gold sinks to fresh yearly lows despite risk-off mood as Fed rate hike bets weigh

Gold slips to fresh year-to-date lows on Friday. The metal struggles despite a risk-off mood across markets, as expectations of further Federal Reserve (Fed) interest rate hikes continue to dominate price action, leaving Gold on track to end the month in negative territory.

Ripple Price Forecast: XRP bulls defend $1.20 as sell-side pressure triggers liquidations

Ripple (XRP) trades around $1.25 on Friday, rising from a short-term support level established at $1.20. This minor upward correction follows a sharp sell-off, triggered amid reports of a hack attack on the Binance exchange that impacted approximately $6.3 billion. The attack drove the broader crypto market on edge, as Binance suspended both deposits and withdrawals to contain the situation.

BoJ recap: A pause for now... but Japan has entered a new inflation phase

The Bank of Japan left its short-term policy rate unchanged at 1.25% but delivered a distinctly hawkish message on the risk of an inflation overshoot. The decision passed by 8-1, with board member Takata dissenting in favour of an increase to 1.5%, while Governor Kazuo Ueda stressed that the Bank would continue adjusting policy as needed.

The 2% inflation target came from a throwaway remark. It now moves trillions

The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.