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Thursday, April 27th
Today the EUR/USD pair managed to recover part of its yesterday’s losses on the back of strong sell-off in the US dollar. Yesterday the dollar came under strong selling pressure against its main competitors, as the US tax reforms plan’s details, provided by D.Trump’s administration, once again left the market unimpressed, causing even more doubts on D.Trump’s ability to fulfill his promises. However, now the pair is trying to consolidate its recent recovery, as traders are gearing up for the ECB policy decision, that is scheduled on this Europe. Expectedly the Bank will keep its policy’s course in the same direction, while any comments regarding QE program and economic outlook adjustments will be able to shape up further EUR/USD pair’s trajectory. Also today the US economy will release fresh fundamentals, but reaction on it will be limited due to more important events, scheduled on this Thursday.
The USD/JPY pair barely reacted on uneventful BoJ meeting, held earlier this morning, stepping away from its overnight highs, posted at 111.40, to the region of 111.20. As it was widely expected the Bank kept its policy steady and its interest rate unchanged at its current level of -0.10%, however, revising its core inflation forecast lower as it also was expected. Moreover, today the pair will continue to retain its softer tone, led by Wednesday's disappointment surrounding D.Trump's much-awaited tax reforms. The tax announcement offered little surprise, as once again provided lack of any specific details regarding further US policy stance, thereby significantly weighing the greenback. Looking ahead, today traders will keep eyes on US macroeconomic releases, while ECB monetary policy decision will also be able to trigger a fresh bout of volatility across the market.
The USD/CAD pair came under intense selling pressure this Thursday, losing more than 100-pips from its recent 14-month highs, posted at 1.3647 during Asian trading session. The pair performed sharp reversal move this morning after the US President agreed not to terminate the North American Free Trade Agreement (NAFTA) at this time, strongly boosting demand for the Loonie. Moreover, broad weakness around the greenback, backed by Wednesday's disappointment from Trump's much-awaited tax reforms, is also collaborating with pair’s bearish trend. On the other hand, still persisting oil price weakness will limit any further pair’s decline. Now attention turns toward US economic releases due later in the NA session, while US dollar’s weakness will continue to remain as a main driver across the market.
The GBP/USD pair is trading with strong bullish bias this Thursday, extending its upside rally for the third session in a row. Today the pair broke through its key resistance level of 1.2900 in early Europe, as markets are still digesting US administration’s failure to provide any details on the US tax reforms plan. Moreover, seems that optimism around the pound, led by the UK PM Theresa May's announcement to call for a snap election on June 8th, is still being a key factor that is navigating the pair lately. Now focus shifts toward US macroeconomic releases, featuring Core Durable Goods Orders and Pending Home Sales, while ECB monetary policy decision might also have some impact on the pair.
The main events of the day:
ECB Interest Rate Decision – 14.45 (GMT +3)
US Core Durable Goods Orders – 15.30 (GMT +3)
ECB Press Conference – 15.30 (GMT +3)
US Pending Home Sales – 17.00 (GMT +3)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0808 R. 1.0998
USDJPY S. 110.31 R. 112.15
GBPUSD S. 1.2779 R. 1.2932
USDCHF S. 0.9888 R. 0.9990
AUDUSD S. 0.7396 R. 0.7590
NZDUSD S. 0.6822 R. 0.6990
USDCAD S. 1.3516 R. 1.3674
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