lundi 30 mars 2015
Dollar bull run gathering momentum as EUR/USD and GBP/USD eye key supports
Posted on 04:06 by nice news
Asian markets have been slightly higher today despite a weak set of Japanese industrial data which saw industrial production falling by 3.4% which was worse than expected. Alongside comments coming from the People’s Bank of China about the slide in growth this has the potential to drive further easing to monetary policy by both Japan and China. This allowed the Nikkei to close around 0.8% higher. European markets are set to follow the Wall Street bounce into the close and are currently seeing early gains.
In forex trading the majors are all under a little bit of pressure against the US dollar with Cable seemingly under the most pressure. Traders will be looking out for the German inflation data that is released throughout the morning culminating in the country-wide data at around 1300BST. There is also the Personal Consumption Expenditure at 1330BST which is the Fed’s preferred measure of inflation, so markets will be looking for any uptick in inflation even though Yellen suggested on Friday that an increase in core inflation was not essential to an increase in rates. Note the time change in the European markets today following on from the shift to summer time over the weekend.
Chart of the Day – GBP/JPY
The downside pressure has been continuing for a few weeks now but is once more coming up to a crucial test of support. The Fibonacci retracement levels of the big October to December bull run from 168.00/179.65 have been an excellent gauge for turning levels and consolidations over the past few months. The 61.8% retracement is at 176.27 and played a strong role in the holding of support in January and February. Now this level is close again, being used on Thursday for the low and which continues to hold. Momentum indicators show a clear corrective bias with RSI, Stochastics and MACD all in deterioration, but this level of support is now crucial for the near/medium term outlook.
In forex trading the majors are all under a little bit of pressure against the US dollar with Cable seemingly under the most pressure. Traders will be looking out for the German inflation data that is released throughout the morning culminating in the country-wide data at around 1300BST. There is also the Personal Consumption Expenditure at 1330BST which is the Fed’s preferred measure of inflation, so markets will be looking for any uptick in inflation even though Yellen suggested on Friday that an increase in core inflation was not essential to an increase in rates. Note the time change in the European markets today following on from the shift to summer time over the weekend.
Chart of the Day – GBP/JPY
The downside pressure has been continuing for a few weeks now but is once more coming up to a crucial test of support. The Fibonacci retracement levels of the big October to December bull run from 168.00/179.65 have been an excellent gauge for turning levels and consolidations over the past few months. The 61.8% retracement is at 176.27 and played a strong role in the holding of support in January and February. Now this level is close again, being used on Thursday for the low and which continues to hold. Momentum indicators show a clear corrective bias with RSI, Stochastics and MACD all in deterioration, but this level of support is now crucial for the near/medium term outlook.
Dollar bull run gathering momentum as EUR/USD and GBP/USD eye key supports
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