Slow start to a busy week for the U.S. dollar

Slow start to a busy week for the U.S. dollar

6 March 2017, 12:39
Valeriy Brusilovskyy
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The U.S. dollar closed on Friday on a weaker note despite the markets showing an increased probability for a rate hike in March. The economic calendar today is light with no major releases lined up. So far, Australia's retail sales figures showed a 0.4% increase on a month over month basis, as expected, reversing the 0.1% decline from the month before.

Fed Chair, Janet Yellen’s speech on Friday all but confirmed the Fed’s intention to hike rates at the March FOMC meeting by 25 basis points. The focus is of course this week’s payrolls report which could be a minor but last obstacle for the Fed to follow through.

Elsewhere, the economic calendar today will see the release of the Eurozone Sentix investor confidence and the U.S. factory orders which is expected to rise at a pace of 1.1%. All in all, a rather slow day with no major catalysts in sight for the moment ahead of this Wednesday's ADP payrolls report and Friday's nonfarm payrolls.

EURUSD (1.0603): EURUSD closed on Friday with some strong gains, closing back above the support level at 1.0551. Expect to see a near term pull back towards this support level (1.0551) for a reversal. This could potentially mean that EURUSD could be looking to post another leg of gains to the upside if support at 1.0551 is formed. Watch for short term resistance near 1.0600 while to the downside, 1.0521 will be critical as a break down below this level could mean further decline in prices. This week's ECB meeting on Thursday will be the main event for the single currency.

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