Daily economic digest from Forex.ee
Stay informed of the key economic events
Friday, March 17th
The EUR/USD pair stepped away from its 6-week highs, posted at 1.0782 mark this morning, however, is still remaining firmer at the end of this week. Yesterday the pair caught another wave of bids, as market reacted in favour of EUR on far-right candidate G.Wilder’s failure on Dutch presidential election race, thereby easing somewhat political concerns surrounding the Eurozone. Moreover, the pair received additional bullish momentum on the back of hawkish comments from the ECB member E.Nowotny, who noted that the EU Bank is also ready for further monetary policy tightening, but it may differ from Fed measures. Today after highly volatile week the economic calendar remains silent, leaving the pair at the mercy of global market’s sentiments, driven by recent crucial events.
The GBP/USD pair broke out of its consolidation pattern at European opening and resumed its growth, as the dollar remains weak at the end of this week. Currently the pair is trading in 1.2390 region, as GBP bulls are back in business after short breather during Asia. On Thursday the pound caught strong boost after hawkish BoE meeting, where Bank’s members voted 8-1 to keep interest rate unchanged, with a one vote for a rate hike. Such ratio of votes triggered rumors across the market of further BoE interest increase, thereby lifting the pair for more than a cent. Moreover, adding to pair’s bid tone the market continues digesting recent dovish FOMC meeting, collaborating with softer tone in the greenback. Nothing much is scheduled in data calendar on this Friday, so the pair will continue to stay influenced by recent crucial economic events at the end of this week.
The USD/CAD pair caught fresh bids this morning, correcting higher after short consolidation in Asia, in response of US dollar’s attempts to recover some ground. However, further recovery is unlikely, as the greenback remains suppressed by recent less hawkish FOMC meeting, witnessed on Wednesday. Moreover, better tone around oil prices, following Wednesday drop in US Crude Oil Inventories, is also supporting commodity-linked Loonie. Today only secondary data are scheduled in both dockets, so sentiments around the USD will continue to stay as a key driver for the pair at the end of this week.
The AUD/USD pair moved away from its morning highs, marked at 0.7694, in response to attempts of the dollar to recover against the basket of its main competitors. Besides, softer tone around copper and shrinking risk appetite are also weighing the pair as of late. However, ongoing broad US dollar’s weakness is still gripping the market, so any further pair’s drop most likely will be limited. On the data front, nothing special is scheduled for the pair on this trading session, so the major will continue to follow broad market’s moods to determine its further direction.
The main events of the day:
None
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0681 R. 1.0811
USDJPY S. 112.60 R. 113.88
GBPUSD S. 1.2188 R. 1.2460
USDCHF S. 0.9915 R. 1.0035
AUDUSD S. 0.7633 R. 0.7739
NZDUSD S. 0.6923 R. 0.7077
USDCAD S. 1.3239 R. 1.3355
The best conditions for making a start on STP only at Forex.ee! Register an account now
and feel the difference from the first trade!
Your European ECN-broker,
Forex.ee
