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Monday, April 24th
The EUR/USD pair opened today with a huge gap, refreshing its half-year tops at the level of 1.0919, following E.Macron’s win at the first French election round with 23.87% of votes, outperforming his main opponent M. Le Pen, which scored 21.75%. However, M.Le Pen’s win in the presidential elections is still a threat to the euro, as it may imply France’s exit from the EU. Now both candidates will meet at the second round, that is scheduled on 7th of May, where expected that E.Macron will take more than 60% of votes, leaving M.Le Pen far behind. Meanwhile, this recent political event has caused huge risk-on wave, that is still gripping the market and forcing the pair to retreat, refreshing its daily minimums almost a cent lower at 1.0821 mark. Moreover, D.Trump’s tax reform plans, due to be announced later this week, have renewed optimism around the dollar, additionally weighing the pair at the start of this week. Now immediate focus shifts toward German Ifo Business Climate Index, that will be able to bring some impetus to the pair, while the US docket will keep silence during this Monday, leaving the pair at the mercy of global market’s trend during NA session.
The AUD/USD pair failed to sustain its gains, led by strong risk-on rally, which was triggered by the first round of French elections, as traders took some profits off the table, while latest talks surrounding upcoming D.Trump’s tax reforms, that refreshed some optimism around the greenback, have additionally weighed the pair this morning. However, risk-on market’s moods, additionally fueled by better tone in commodities will continue to underpin higher-yielding assets, such as the Aussie, during this trading session. Looking ahead, today we have relatively quiet data session, so the pair will continue to trace global market’s sentiments and broad risk trend to determine its further direction at the start of this week.
The dollar/yen pair today opened with strong bullish gap, as massive wave of risk-on moods hit the market, triggered by the first round of French elections, that were held on Sunday. However, the pair took a mild correction during Asia on the back of broad profit-taking actions, allowing the pair step down from its nearly 2-week highs, posted at 110.54 in early Asian session. On the other hand, the market is remaining in risk-on state, so pair’s correction ended quickly, forcing the USD/JPY to regain its upside momentum this morning. Today amid absence of any fundamental releases, the pair will continue to trace global market’s sentiments, that are majorly based on risk-on trend at the start of this week.
Seems that the pound has failed to benefit from strong global risk-on sentiments, based on outcome of the first round of French elections, allowing the GBP/USD pair to retreat from its daily highs, posted at 1.2839. The pair came under bearish pressure earlier this trading session, majorly in response to huge downside rally in pound’s cross with the euro. However, the GBP/USD pair continues to show relatively quiet trades for the fourth trading session in a row, strengthening its position after UK PM T.May called for snap general election on June 8th. Today, amid absence of any fundamental triggers from both sides the pair will stay at the mercy of global market’s sentiments during this Monday.
The main events of the day:
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0831 R. 1.0943
USDJPY S. 109.53 R. 110.83
GBPUSD S. 1.2861 R. 1.2787
USDCHF S. 0.9885 R. 0.9960
AUDUSD S. 0.7510 R. 0.7615
NZDUSD S. 0.7006 R. 0.7073
USDCAD S. 1.3551 R. 1.3615
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