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Tuesday, March 14th
The EUR/USD pair is extending its bearish trend after brief consolidation, seen in Asia. The major currency pair has reversed part of its last week’s gains, triggered by solid sell-off around the dollar, and now is trading in 1.0640 region, as traders continue to price in interest rate increase on the upcoming FOMC meeting. Tomorrow’s Fed rate hike is a done deal, while investors will closely watch for any clues on further Fed monetary policy tightening. Looking ahead, today Germany and Eurozone will publish its ZEW Economic Sentiments, while US will release Producer Price Index, that is due later in NA session.
The GBP/USD pair breaks out of its bearish consolidative pattern and slumps to its 8-week lows, marked at 1.2125 in wake of returning demand for the US currency. Moreover, the pound remains heavily sold-off today, despite news that UK Parliament officially gave permission to begin Brexit process, that finally sheds some light on the overall developments surrounding Brexit. Following crucial news, UK Brexit minister D.Davis noted, that the government will trigger the Article 50 by the end of this month as it was planned before. Growing cautiousness ahead of both interest rate decisions is additionally suppressing the pound, thereby limiting any chances of pair’s recovery. Today the US PPI data will remain in focus, while global market’s sentiments, driven by USD price-actions, will continue to determine pair’s further direction.
The AUD/USD pair came under strong selling pressure in wake of new wave of buying interest around the greenback, easing most part of yesterday gains. Currently the pair is trading near its daily lows, marked at 0.7540, as weak NAB Business Confidence has added some bearish pressure to the pair, while positive Chinese manufacturing data failed in providing any positive impetus to the pair. Moreover, broad nervousness ahead of the key event of this week is also collaborating with pair’s offered tone lately. Today only US PPI data is scheduled for release, so the pair will continue to trace sentiments around the US dollar to determine its further direction.
Today the USD/CAD pair is trading with a smile at 1.3470 level after two consecutive sessions of losses in wake of broad demand for the greenback. Seems that traders are pricing in tomorrow’s Fed rate hike, as probability that the rate will be increased at upcoming committee meeting is more than 90%. Moreover, strong support from US bulls forced the pair to shrug off improved sentiments around crude oil prices, relegating it to a second role. Today the pair will continue to trade following global markets sentiments, while the US will release PPI data later in NY trading session.
The main events of the day:
US PPI – 14.30 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0609 R. 1.0735
USDJPY S. 114.30 R. 115.20
GBPUSD S. 1.2101 R. 1.2309
USDCHF S. 1.0027 R. 1.0139
AUDUSD S. 0.7506 R. 0.7624
NZDUSD S. 0.6892 R. 0.6964
USDCAD S. 1.3404 R. 1.3496
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