EUR/USD tumbles to lows as USD makes a smart comeback

Haresh Menghani FXStreet

• EUR/USD confirms a ceiling near 1.2080-90 region.
• Wage growth data help revive USD demand.
• Surging US bond yields add to the downward pressure.

The EUR/USD pair faded a knee-jerk bullish spike and quickly retreated around 50-pips from session tops.

The pair rallied hard on the back of weaker-than-expected headline NFP number but once again came under some fresh selling pressure near the 1.2080-90 supply zone.

Additional details from the latest US jobs report revealed that unemployment rate held steady at a 17-year low level of 4.1%, which along with a pick-up wages growth revived hopes for a March Fed rate hike more.

The same was being showcased by a sharp rebound in the US Treasury bond yields and eventually helped revive the US Dollar demand.

The pair has now dropped to the 1.2030-25 region and the price-action clearly seems to suggest that a near-term ceiling could already be in place, which is likely to be confirmed once the key 1.20 psychological mark is breached.

Next on tap would be the release of US ISM non-manufacturing PMI, which even if matches consensus estimates might continue to prompt some additional long-unwinding trade through the NY trading session on the last day of the week.

Technical levels to watch

Bulls might continue to guard the 1.20 handle, below which the pair is likely to accelerate the slide towards the 1.1945-40 horizontal support. On the upside, any fresh up-move now seems to confront fresh supply near the 1.2070 region, which if cleared could assist the pair to surpass the 1.2100 handle and aim towards its next major hurdle near the 1.2165 region.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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.