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Friday, April 8th
EUR/USD pair extends weakness into a second day today as
markets continue to weigh the latest more dovish ECB accounts/ minutes in light
of Fed Yellen’s less dovish comments delivered after the Wall Street close.
“Economy is on path for further rate increases" and "US on solid
course, not a bubble economy." – Head of Fed announced. Looking ahead, the
major will continue to track the broader market sentiment along with the USD
moves for further direction as the trading calendar remains data-quiet on the
final trading day of this week. Currently, EUR/USD trades lower at 1.1362, near
daily lows printed at 1.1359 earlier on the day. Daily support and resistance
levels are located at 1.1271 and 1.1445.
USD/JPY recovery from one and a half year lows regained
momentum over the last hour, with bulls extending their control and now
attempts another run towards 109 barrier. Having peaked at 107.67 in the last US session, the
Japanese currency is seen reversing a part of the recent rises against its
American counterpart, largely on profit-taking after five consecutive sessions
of extensive gains.
Meanwhile, the JPY traders continue to digest the
recent comments from Japanese officials defending their domestic currency,
while noting that Fx market intervention is not needed now, which has
contributed to the unstoppable rise in the yen to fresh multi-month tops over
the past week. Looking ahead, amid a lack of fresh economic releases later
today, focus will remain on the Fed speaks and sentiment around oil and stock
markets. At the moment pair trades at 108.77. Support and resistance
levels for the pair are located at 106.55 and 109.34.
GBP/USD is seen surrendering in the European morning, and drifts lower towards daily lows as markets remain wary ahead of the crucial UK industrial and manufacturing output numbers which is likely to show the output contracted in February. GBP/USD remains at the mercy of the action in the GBP/JPY cross. Profit taking may gather pace, given the cross has declined almost 1000 pips in last one week. Meanwhile, UK trade balance (Feb) due for release. The pair is currently trading at 1.4068 expecting high volatility due to today's releases. Support and resistance levels for the pair are 1.3963 and 1.4143
USD/CHF pair trades modestly flat at fresh session lows of 0.9557. The majors sentiments now relates on US dollar index. Moreover, upbeat employment numbers from the Swiss economy also bolstered the sentiment around the Swiss franc, thereby dragging USD/CHF lower. Now pair is trading at 0.9567 with its support and resistance levels at 0.9516 and 0.9626 respectively.
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