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Tuesday, April 18th
The EUR/USD pair remains relatively quiet at the first working day after four-day Easter holidays, trading in 15-pips narrow range of 1.0640-55. Seems that the pair is experiencing lack of momentum this Tuesday on the back of absolutely empty European data calendar. However, renewed risk-off trend, backed by cautious sentiments of RBA Meeting Minutes, and softness of the US dollar are providing some support to the pair lately. Looking ahead, today only the US data bloc, featuring Building Permits and few second tier data releases, will be able to bring some impact to the pair, however, latest headlines from French political field will also be closely watched, as we are getting closer to the first round of presidential election in France, scheduled on Sunday, 23rd.
The AUS/USD pair came under strong selling pressure this morning after the RBA released its Meeting Minutes. The Bank kept cautious tone on further monetary policy, once again noting about risks associated with a strong Aussie dollar. Moreover, the CB also showed some concerns about weak data from Australian labor market, thereby sending the pair to refresh its weekly lows at 0.7555 level. Adding to that, weakness in commodity market, especially in iron, that recently hit its 5-week lows, and renewed risk-off market profile will continue to weigh the pair during this Tuesday. Meanwhile, now attention turns towards the US bloc of economic releases from housing market, that will be able to bring some short-term impetus to the pair later today.
The USD/JPY pair stalled its yesterday’s recovery from its 5-month lows, posted at 108.13 mark, and now is holding in upper bound of this week’s range. The pair met strong resistance at 109.22 spot this morning, as risk-aversion sentiments returned to the market amid ongoing tensions between the US and North Korea, dovish RBA Meeting Minutes and weaker commodities’ prices. Moreover, slight weakness of the US currency is also limiting pair’s further gains. Next of note for the major remains the US housing data numbers, which will be released later in the NA session, while broad risk-off trend will continue to drive the pair during the European session.
The GBP/USD pair is trading on a firm note this Tuesday, despite broadly shrinking market’s risk appetite. The pair bounced off its overnight lows and now is navigating toward its multi-week highs, posted last trading session just a few pips below 1.2600 spot, as ongoing US dollar’s weakness continues to support the pair lately. On the other hand, wave of risk-off sentiments, triggered by cautious RBA Meeting Minutes, are limiting major’s further gains. Looking ahead, today only the US data, scheduled on NA session, will be able to bring some momentum to the pair, so broad risk-off trend and global market’s sentiments will remain as key drivers for the pair during this Tuesday.
The main events of the day:
US Building Permits – 15.30 (GMT +3)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0569 R. 1.0707
USDJPY S. 107.76 R. 109.62
GBPUSD S. 1.2481 R. 1.2635
USDCHF S. 0.9990 R. 1.0080
AUDUSD S. 0.7542 R. 0.7634
NZDUSD S. 0.6958 R. 0.7062
USDCAD S. 1.3239 R. 1.3359
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