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Monday, March 6th
The EUR/USD pair steps higher in early Europe in wake of strong risk-off sentiments across the market after brief pull back during Asia. However, seems that US bulls are fighting hard for the control over the pair, as the market is still digesting recent J.Yellen’s speech, in which she admitted that rate hike at upcoming committee meeting would likely be appropriate, however, noting that the final decision will depend on employment and inflation data. On the other hand, investors react negatively on Swiss CB member’s comments, that M.Le Pen will likely win in presidential race, thereby fueling speculations around French elections. Nothing much is scheduled for this Monday in data calendar from both sides, so the pair will keep following global market’s sentiments to determine its further direction.
The Aussie corrects higher against its American competitor after brief post-Yellen bearish rally, seen in Asia. Currently the AUD/USD pair is trading in south direction, as morning’s Australian Retail Sales data showed positive numbers, meeting markets expectations. However, broadly reduced risk appetite and returning demand for the US currency, as the market is still digesting last Fed Chair J.Yellen’s speech, are weighing the pair this Monday. Today the US data calendar is remaining relatively empty, so the AUD/USD pair will keep tracing the USD price dynamics, while focus now turns on RBA Interest Rate decision, scheduled on next Asian trading session.
The GBP/USD pair drifts in north direction at the start of this week after massive comeback, seen in Friday. Seems that US bulls are back in business today, taking control over the pair, as the market is still digesting recent Fed Chair J.Yellen’s direct hints at rate hike on the upcoming FOMC meeting. Moreover, any pair’s recovery remains fragile, as uncertainty over Brexit negotiations and UK’s weak fundamentals, seen lately, are also collaborating to pound’s retreat across the market. Today both economic calendars will keep silence, leaving the pair at the mercy of global market’s sentiments, led by growing expectations of Fed refi rate increase at the next committee meeting.
Today the dollar/yen extends its Friday’s decline from two-week highs, marked at 114.75 in Friday, as the dollar was unable to benefit from J.Yellen’s hawkish rhetoric. Currently the pair is trading within striking distance of its today’s lows, posted at 113.60, in wake of broadly shrunk risk appetite. Moreover, cautious sentiments are starting to gather pace across the market also collaborating with demand for safe haven assets, as we are getting closer to crucial jobs report from the US economy, scheduled on this Friday. Today RO-RO trend and USD price dynamics will remain as key drivers for the pair, as only secondary data reports are due for release during this trading session.
The main events of the day:
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0454 R. 1.0706
USDJPY S. 113.23 R. 115.13
GBPUSD S. 1.2182 R. 1.2354
USDCHF S. 1.0030 R. 1.0158
AUDUSD S. 0.7523 R. 0.7633
NZDUSD S. 0.6973 R. 0.7101
USDCAD S. 1.3327 R. 1.3459
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