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Friday, April 28th
Seems that the euro bulls have finally taken control over the EUR/USD pair in early Europe, following positive German data, however, staying unable to break through resistance, located at 1.0900 spot. Yesterday selling pressure around the euro started to gather pace, following the ECB meeting and further press conference with its representatives. As it was widely expected the Bank left its monetary policy unchanged, however, during the press conference the ECB president M.Draghi was hawkish on economic outlook. Further the head of the Bank noted that the Governing Council didn’t discuss a QE exit strategy and once again reiterated that the Bank could extend the QE program beyond 2018 if necessary, which in its turn led to euro’s broad decline. Now immediate focus shifts toward EU flash inflation report, while US preliminary GDP, that will be released in NA session, will also bring investors fresh trading opportunities at the end of this week.
The dollar/yen pair showed lack of direction in early Europe, however, having stepped away a few pips lower from its overnight highs, posted at 111.32, as renewed risk-off trend prevailed in the market during Asian trades. This morning the US President D.Trump once again commented on political tensions between North Korea and USA, thereby fueling risk-aversion across the market. However, the president added that he would love to solve things diplomatically but it’s very difficult. Also, seems that the market has ignored a slew of mixed Japanese reports allowing the USD/JPY pair to consolidate its positions in its comfort territory. Now traders are gearing up for US macro news, that are expected later in the NA session, while broader risk-off sentiments will continue to stay as an exclusive driver for the pair at the end of this week.
Today the USD/CAD is navigating in north direction, closely eyeing on 14-month highs, posted at 1.3670 during previous trading session. Yesterday the pair fell sharply following US president D.Trump’s comments on NAFTA, which strongly boosted buying interest around the Loonie. Nevertheless, bulls were able to quickly recover its losses in wake of sharp retreat in oil prices. Today the pair continues to expand its previous session’s recovery, despite oil price slight correction and mildly softer tone around the greenback, triggered by disappointing announcement on the US taxation program. Today both neighbor economies will release GDP numbers, that will help traders to determine pair’s next leg of directional move.
The GBP/USD pair extends its bullish rally for the fourth consecutive session, that could be explained by ongoing pound’s optimism, triggered by the UK PM Theresa May’s announcement to call for a snap election on June 8th. Moreover, US administration’s failure to provide any details on the US tax reforms plan is still weighing the greenback, thereby additionally supporting the major. Currently the pair is trading within striking distance of its 7-month high, posted at 1.2939 spot in early Europe, as traders are awaiting for UK preliminary GDP, that will provide the pair with another strong impetus. Moreover, further course of the pair also depends on US prelim. GDP, that will be released later in NA session, and will also shape up pair’s further direction.
The main events of the day:
UK prelim. GDP – 11.30 (GMT +3)
EU prelim. CPI – 12.00 (GMT +3)
US prelim. GDP – 15.30 (GMT +3)
Canadian GDP – 15.30 (GMT +3)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0804 R. 1.0966
USDJPY S. 110.65 R. 111.89
GBPUSD S. 1.2807 R. 1.2963
USDCHF S. 0.9897 R. 0.9985
AUDUSD S. 0.7414 R. 0.7518
NZDUSD S. 0.6809 R. 0.6953
USDCAD S. 1.3468 R. 1.3752
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