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Friday, March 3rd
The EUR/USD pair eases part or its recovered positions from its weekly lows, marked yesterday at 1.0495, as euro bulls apparently are out of steam as of late. Yesterday the pair managed to bounce off from its key support level of 1.05 and recover some ground, as strong risk-off sentiments supported the euro somewhat. Additionally, seems that traders are performing some profit taking actions in USD longs especially in light of another wave of Fedspeaks, scheduled on NA session. Now all focus remains on the bloc of local EU service PMIs and final Eurozone’s services PMI report, scheduled on European session, while US ISM Non-Manufacturing PMI and speech of Fed Chair J.Yellen will take center stage during NY trading session.
Seems that USD bulls have taken a breather allowing the AUD/USD pair to bounce off from its monthly lows, posted at 0.75432 in Asian session on Friday. Yesterday the buck picked up significant strength across the market amid growing chances of this month rate hike on upcoming Fed’s meeting, forcing the pair to lose more than 120 pips. Moreover, yesterday’s green numbers from the US labor market and negative results of Caixin Services PMI are providing extra bearish pressure on the pair. Today traders will focus their attention on US ISM Non-Manufacturing PMI and couple of Fedspeaks with J.Yellen’s speech in a main role.
The Kiwi extends bearish run against its American counterpart for the sixth session in a row on Friday on divergence between monetary policy outlooks of the Fed and RBNZ. The NZD/USD pair remains the weakest major of this week, as hawkish talks of US policymakers are rising hopes of this month rate hike, while cautious rhetoric of RBNZ Governor G.Wheeler has left doors opened for any further NZ monetary policy easing. Moreover, weaker Chine services PMI report is also adding some bearish pressure on the pair at the end of this week. Focus now remains on US ISM Services PMI data and a flurry of Fedspeaks, including Fed Chairwoman J.Yellen’s speech, which will be able to provide fresh clues on when the US interest rate will be raised.
The dollar/yen pair retreats from its two-week highs, marked at 114.59 on Thursday, as US bulls are out of steam this morning. Currently the pair is trading in south direction, breaking four sessions’ winning streak and refreshing its daily lows at 114.07, despite broadly stronger greenback's positions. Pair’s retreat could be explained by increased demand for safe-haven assets, fueled by poor Chinese data, lending extra support for the yen. On the other hand, bloc of mixed Japanese data with inflation numbers and reports from JP labor market are limiting further USD/JPY pair’s downside traction. Today the pair will continue to follow USD price dynamics, as traders are preparing for the another round of Fedspeaks, with J.Yellen’s speech in a main role.
The main events of the day:
UK Services PMI – 11.30 (GMT +2)
US ISM Non-Manufacturing PMI – 17.00 (GMT +2)
Fed Chair J.Yellen’s Speech – 20.00 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0460 R. 1.0574
USDJPY S. 113.31 R. 115.13
GBPUSD S. 1.2205 R. 1.2337
USDCHF S. 1.0057 R. 1.0183
AUDUSD S. 0.7479 R. 0.7727
NZDUSD S. 0.6988 R. 0.7186
USDCAD S. 1.3292 R. 1.3450
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