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Tuesday, March 21st
The EUR/USD pair met fresh bids in Asian trading session on news that centrist E.Macron has strengthened its leading positions in French election race. Today it became known that E.Macron won the first Presidential debates, strongly outperforming far-right candidate M.Le Pen. This news reduced fears around M.Le Pen’s promises of Frexit and bringing back French franc in case of her victory in the elections. Today EU data calendar remains absolutely empty, while US docket contains only secondary data releases, so the pair will continue to follow global market’s trend, based on recent economic and political events from both sides.
This morning the AUD/USD pair bounced off several times its key support level of 0.7700, nevertheless, still remaining under bearish control. The major came under strong selling pressure this Tuesday, as RBA minutes showed concerns about growing risks associated with housing market. Moreover, ongoing sell-off in copper is also collaborating with pair’s bearish bias. On the other hand, still persisting US dollar’s softness, based on recent dovish FOMC meeting, is slowing down pair’s further retreat. Looking ahead, another quiet data session approached the market this Tuesday, leaving the pair at the mercy of global market’s sentiments.
The dollar/yen pair trades on a firm note this Tuesday, despite weak sentiments around the greenback. The pair regained its bid tone in Asia, as strong risk-on rally, based on upbeat sentiments around French elections, have weighed yen’s safe-haven status. However, further pair’s growth appears fragile, as the market is still digesting recent less hawkish comments of Fed Chair J.Yellen regarding further Fed rate increases. Nothing much is due to release during this trading session, so RO-RO trend and USD price dynamics will remain as key drivers for the pair this Tuesday.
The pound regained its positive mood against its US peer on European opening, stepping away from its daily lows, posted at 1.2340 spot, after yesterday’s retreat. Seems that US bulls took a breather this morning, after brief dollar’s correction, allowing the pair to recover some pips. Also traders reacted positively on UK PM T.May’s plans to trigger Article 50 on March 29, that brings some clarity around Brexit developments. Further negotiation process of UK exit from Eurozone will remain as a key driver for the pair in a mid-term projection. However, immediate focus shifts to UK inflation figures due to release in Europe, while US data calendar remains relatively empty another session in a row.
The main events of the day:
UK CPI – 11.30 (GMT +2)
BoE Governor M.Carney’s speech – 12.00 (GMT +2)
Canadian Core Retail Sales – 14.30 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0694 R. 1.0800
USDJPY S. 112.18 R. 113.08
GBPUSD S. 1.2274 R. 1.2476
USDCHF S. 0.9945 R. 1.0011
AUDUSD S. 0.7661 R. 0.7781
NZDUSD S. 0.6971 R. 0.7113
USDCAD S. 1.3274 R. 1.3412
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