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Tuesday, April 11th
The EUR/USD pair is consolidating its yesterday’s minor decline just a few pips below the 1.06 level, as US bulls remained unimpressed by recent J.Yellen’s speech. Last night, Fed Chairwoman delivered her speech, in which she once again noted, that it will be appropriate to raise rates in near future, but terms of further rate-hikes are highly dependent on economic performances. Moreover, renewed risk-aversion sentiments are providing some support to the common currency, limiting pair’s further losses. Now all traders’ attention is focused on German ZEW Economic Sentiment that is due next ahead of US JOLTs Job Openings, which both will be able to bring short-term impetus on the pair during this trading session.
The GBP/USD pair was trading in 20-pips narrow range around 1.2420 level through Asian session amid lack of any directional impetus, despite yesterday’s J.Yellen’s hawkish remarks on further Fed monetary policy tightening. However, seems that Fed Chairwoman’s comments appeared not hawkish enough to inspire USD bulls for any further upside momentum. On the other hand, broadly shrinking risk appetite is driving flows away from higher-yielding assets, negatively influencing the pound this Tuesday. Now immediate focus remains on the bloc of UK economic releases with CPI in a main role, while US JOLTs Job Openings data, will also be closely watched for any further momentum.
The USD/CAD pair has stalled its previous sessions fall and now is consolidating its positions in 1.3315-35 range. On Monday the pair performed a sharp downside rally, losing around a cent since yesterday’s highs, posted at 1.3426, on the back of strong increase in oil prices, that provided massive support to commodity-linked assets, such as the Loonie. However, currently the oil has also entered consolidation phase, failing to provide any additional momentum to the pair this Tuesday. On the other hand, the US dollar failed to gain any upside momentum against its major rivals, weighed by not hawkish enough Yellen’s speech, providing no chances for the pair to recover its positions. Today the US economy will release only JOLTs Job Openings report, so dynamics of the oil prices and the USD will remain as a key catalyst for the pair this Tuesday.
The dollar/yen pair seems to be extending its yesterday’s reversal from its weekly highs, marked yesterday at 111.57, and now is trading in the region of its session lows around 110.60-70. The pair came under renewed selling pressure, as yesterday’s spike of the demand for higher-yielding assets seems to be fading away, thereby boosting yen’s safe-haven status. Moreover, overnight’s remarks of Fed Chair J.Yellen, that once again indicated on additional rate actions, failed to provide the greenback with support, as Yellen hinted that there is no rush needed in further monetary policy tightening. With only JOLTs Job Openings data scheduled in economic docket for this Tuesday, the pair will most likely continue to follow global market’s sentiments for any further directional improvements.
The main events of the day:
JOLTs Job Openings – 17.00 (GMT +3)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0553 R. 1.0627
USDJPY S. 110.32 R. 111.88
GBPUSD S. 1.2338 R. 1.2466
USDCHF S. 1.0056 R. 1.0122
AUDUSD S. 0.7463 R. 0.7527
NZDUSD S. 0.6903 R. 0.6993
USDCAD S. 1.3254 R. 1.3460
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