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Monday, June 12th
Seems that the EUR/USD pair has recovered a smile and today remains above the level 1.1200 after negative rally, seen last week. Last Thursday, the pair met additional offers in wake of dovish bias at the ECB meeting, which lowered its inflation forecast for upcoming years. The results of the ECB meeting led to increased divergence between the ECB and Fed, thereby weighing the single currency. However, the major managed to recover part of its losses at the start of this week, following win of the president E.Macron’s party on the first round of the French legislative election. Moreover, softness of the US dollar continues to navigate the market, providing additional support to the pair this Monday. Nothing much is scheduled in the data calendar for the pair, while plenty of major events with Fed Interest Rate Decision in a main role, which are scheduled for this week, will keep investors busy.
The GBP/USD pair regained positive tone in Asian trades, having refreshed its daily highs at 1.2769, after massive sell-off of the pound, backed by results of the UK general election. Seems that the dust around the snap election, which led to a Hung parliament, is settling down, allowing the pair to step away from its 7-week lows, marked Friday at 1.2635 level. However, uncertainty over the pound is still preserved, as the “Soft Brexit” scenario is now more likely, thereby limiting any recovery of the pair. Today we will have only secondary data reports, scheduled in economic calendars for this trading session, while FOMC and BOE monetary policy will hog the limelight later this week.
The USD/CAD pair extends its last week’s decline after sharp sell-off, backed by positive data from the Canadian economy. On Friday the pair performed sharp downside rally on the back of Canadian employment report, that showed outstanding results, sending the pair to retest its 2-week lows at 1.3422 spot. Moreover, mild recovery of oil prices, witnessed this morning, and subdued trading activity of the greenback are lending additional pressure on the pair at the start of this week. Looking ahead, the economic data calendar will stay broadly muted during this Monday, while markets start to prepare for another crucial event - Fed Interest Rate Decision, with a widely expected rate hike later this week.
The USD/JPY pair is showing minor activity at the start of this week, failing to recover after Friday’s sharp sell-off, triggered by risk-off moods, however, remaining above its psychological mark of 110.00. Seems that US bulls remain unable to regain its positive sentiments at the start of this week, failing in several attempts to recover its positions after last Friday’s sell-off. Moreover, mild risk-aversion trend is navigating the pair today, as investors turn slightly cautious ahead of crucial event, which will take place later this week. Today we will have quite data session, with no first-tier data scheduled in the economic calendar, so broad market’s sentiments will continue to determine pair’s further directional course.
The main events of the day:
Support and resistance levels for the major currency pairs:
EURUSD S. 1.1130 R. 1.1268
USDJPY S. 109.17 R. 111.39
GBPUSD S. 1.2458 R. 1.3092
USDCHF S. 0.9615 R. 0.9765
AUDUSD S. 0.7504 R. 0.7554
NZDUSD S. 0.7175 R. 0.7237
USDCAD S. 1.3360 R. 1.3586
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