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Monday, March 27th
The EUR/USD pair is trading on a firm note, flirting with this year highs at 1.0873 spot, as failure of the Trumpcare bill in the Congress is driving the greenback lower across the board. Today the pair opened with strong bullish gap, following news that the House of Representatives rejected US President Donald Trump’s healthcare bill on Friday, thereby raising market’s concerns about D.Trump’s ability to fulfill his election promises. Additionally, positive German data, released in early Europe are also collaborating with positive sentiments around the common currency. Looking ahead, today the pair will continue to follow global market’s sentiments, as only several speeches by ECB and Fed members are scheduled in today’s docket.
The GBP/USD pair remains well bid this Monday, refreshing its multi week highs at 1.2490, on the back of broad dollar’s retreat across the market. On Friday it became known that Trump’s healthcare bill failed to pass through the Congress, providing highly negative impact to the greenback, as it casts doubt on US president’s promises. Moreover, headlines that UK PM T.May is visiting Scottish First Minister N.Sturgeon today in order “to build a more United nation” ahead of this week historical events for UK are additionally supporting the pound. On the other hand, any abrupt moves will remain restricted, as traders now are setting up their focus on initiation of Article 50, that is scheduled on this Wednesday. Today the data calendar will remain relatively silent, so the pair will continue to trace broad markets sentiments during this trading session.
The dollar/yen pair extends its northern march at the start of this week after brief recovery, seen on Friday, once again refreshing its 4-month lows at 110.17 mark. Seems that US bulls remain unconfident today on the back of news that Trumpcare bill didn’t pass the vote in the Congress on Friday, imposing even more uncertainty around D.Trump’s actions and implementation of his tax reforms, that is forcing the greenback to decline across the board. Moreover, shrinking risk appetite across the market is positively influencing safe-haven assets, such as yen. Only secondary data releases are scheduled in today’s docket, so broad risk trend and USD price dynamics will remain as key determinants of pair's movements during this trading session.
The NZD/USD pair set up its course in south direction at the start of this week amid broad US dollar’s weakness. The market reacted negatively on Trumpcare bill failure in the Congress on Friday, thereby sharply weighing on the US currency. On the other hand, risk-off market’s profile is slowing down pair’s bullish rally, capping the Kiwi from any sharp gains. Nothing much is scheduled in data calendar for this Monday, so the pair will continue to follow global markets sentiments, driven by weaker US dollar’s dynamics lately.
The main events of the day:
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0732 R. 1.0850
USDJPY S. 110.28 R. 112.00
GBPUSD S. 1.2434 R. 1.2540
USDCHF S. 0.9849 R. 0.9991
AUDUSD S. 0.7585 R. 0.7659
NZDUSD S. 0.6973 R. 0.7069
USDCAD S. 1.3320 R. 1.3414
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