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Monday, April 3rd
The EUR/USD pair stepped away from upper bound of its range, marked at 1.0681, after minor recovery, as US bulls are still keeping control over the pair. However, any further pair’s sharp falls are unlikely on the back of minor US dollar’s correction across the market, as traders are taking some profit off the table. On the other hand, better risk-on moods are providing some bearish pressure to the common currency, thereby collaborating with pair’s further retreat. At the moment investors are looking forward to the manufacturing PMIs lined up for release from both continents later today.
The AUD/USD pair accelerated its decline at the beginning of the European session, moving toward the level of 0.7600. The Aussie came under renewed selling pressure this morning in wake of poor Australian retail sales, that forced the pair to extend its three-day losing streak. Moreover, broad strength of the US currency and ongoing softness in commodity market are also providing the pair with additional selling pressure. Looking ahead, today the pair will be able to recover some ground, as traders are locking in their profits after last week strong US dollar’s gains. Besides ISM Manufacturing PMI will also provide the pair with short-term momentum later during NA session.
Today the USD/CAD pair regained its positive tone, driving away from its daily lows, marked in the region of 1.3300. Seems that the Looney is losing its positions, gained last week gains, allowing the pair to post its daily highs at 1.3327 spot, despite mild US dollar’s downside correction and better-then-expected Canadian GDP prints, witnessed last Friday. Moreover, stalled recovery of oil prices is also failing to provide the Looney with any bullish momentum lately. Later today, the US economy will release ISM manufacturing PMI, while Canadian docket will provide traders with only secondary data reports during this trading session, so USD price dynamics will remain as a key driver ahead of the US data.
The USD/JPY pair today is trading on a firmer note, now remaining within striking distance of its overnight highs, located at 111.59 spot. Today the pair managed to bounce off its support level 111.13 despite minor greenback’s correction across the board, as mixed Japanese fundamentals failed to provide any support to the yen. Moreover, slight improvement in risk-on sentiment is also driving flows away from safe-haven assets, such as the yen. Now all traders’ attention remains focused on ISM Manufacturing PMI that will provide fresh impetus for the pair's next leg of directional move later in NA session.
The main events of the day:
UK Manufacturing PMI – 11.30 (GMT +3)
US ISM Manufacturing PMI – 17.00 (GMT +3)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0611 R. 1.0721
USDJPY S. 110.64 R. 112.56
GBPUSD S. 1.2388 R. 1.2636
USDCHF S. 0.9981 R. 1.0051
AUDUSD S. 0.7595 R. 0.7679
NZDUSD S. 0.6957 R. 0.7039
USDCAD S. 1.3240 R. 1.3406
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