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Monday, May 15th
Today the EUR/USD pair continues to keep its bid tone, refreshing its weekly tops at 1.0947 mark, on the back of ongoing softness of the US dollar. Seems that market’s participants are still digesting Friday’s disappointing data bloc from the US economy, that has lowered prospects of Fed rate hike in June to 73.8%, thereby strongly weighing the greenback across the board. On the data front, nothing much is scheduled in the data calendar for this Monday, so the major currency pair will continue to follow global market’s sentiments and US dollar’s price actions to determine its further course.
The USD/CAD pair came under strong selling pressure in Asian hours, following latest headlines regarding the OPEC output cut deal extension. Currently the pair is trading in the downside direction, remaining within striking distance of its 3-day lows, marked in the region of 1.3660, as strong rally in oil prices, backed by Russia and Saudi Arabia’s intentions to extend the output cut deal until March 2018, is supporting commodity linked assets, such as the Loonie. Moreover, ongoing sell-off around the greenback, following weak Friday’s US CPI and retail sales data, is also supporting aggressive decline of the pair. Today nothing noteworthy is scheduled in data calendar, so oil price actions and the USD price dynamics will continue to drive the pair at the start of this week.
The NZD/USD pair continues to recover for the second consecutive day, moving away from its 10-month lows marked after the publication of the results of the RBNZ meeting, despite mixed Chinese data, seen earlier this morning. Seems that Kiwi bulls are still full of steam at the start of this week, as solid NZ retail sales data and broadly weaker US dollar, weighed by Friday’s downbeat inflation and retail sales reports, are driving the pair in north direction at the start of this week. Moreover, strong upside rally in oil prices is also providing the pair with extra support as of late. However, poor Chinese Industrial Production report has negatively affected traders’ risk appetite, thereby limiting pair’s further gains. Looking ahead, today we have data quiet session, so global market’s sentiments will continue remains as a key driver for the pair this Monday.
Seems that the dust around the dovish outcome of the BoE meeting has settled down, allowing the GBP/USD pair to break through the level of 1.2900 in early Europe. Today the pair is trading in north direction, gaining more than a cent since Friday’s lows, as US dollar’s weakness remains as a main theme of this Monday. Moreover, sharp upside rally in oil prices has reignited risk-on sentiments, thereby supporting higher-yielding assets, such as the pound. Today both calendars contain only secondary data reports, so the pair will continue to follow global market’s sentiments during this trading session, while tomorrow’s UK’s inflation figures will bring some cautiousness among traders, limiting any sharp moves of the pair.
The main events of the day:
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0827 R. 1.0985
USDJPY S. 112.74 R. 114.24
GBPUSD S. 1.2817 R. 1.2933
USDCHF S. 0.9927 R. 1.0125
AUDUSD S. 0.7333 R. 0.7447
NZDUSD S. 0.6806 R. 0.6894
USDCAD S. 1.3628 R. 1.3782
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