|Day's Range||1.114 - 1.117|
|52 Week Range||1.1122 - 1.1842|
Australian Federal Elections go the way of the Aussie Dollar, with Brexit, EU elections, stats, and trade war chatter in focus in the week ahead.
Investing.com - After a week dominated by escalating trade tensions between the U.S. and China the trade war looks likely to remain to the forefront of investors’ minds, but this week will also feature Federal Reserve minutes, U.S. retail earnings and economic data as well as European Union elections.
Robust growing USD Index pushed down all its major rivals. Hence, EUR/USD pair plunged despite positive Euro-specific data. Meanwhile, the Cable continued to douse in fall amid Brexit chaos.
The Euro drifted a bit lower during the week, after initially trying to rally. That being the case, it looks as if the negativity continues in this market, as the Euro has been beaten down a bit over the last several months. That being said, it’s been a real grind so collapses that necessarily in the cards.
The Euro went back and forth during the trading session on Friday, as we simply have no idea where we are going to go. At this point, it looks like the market is testing the 1.1150 level, and we could see some type of significant move once we make a decision.
Based on the early price action, the direction of the EUR/USD on Friday is likely to be determined by trader reaction to the price cluster at 1.1184, 1.1185 and 1.1187. So far, this area is holding as resistance.
The British pound remains under pressure as talks between the U.K.’s Conservative and Labour parties collapse without an agreement on how to pursue Brexit. Meanwhile, the Japanese yen finds support as trade-war concerns put renewed pressure on global equities.
Asian markets are worried about the increase in anti-American rhetoric in the Chinese media against the background of escalating trade conflicts. However, this hurts Chinese markets, which have re-emerged to decline and are losing more than 1.2%.
Italian threat to violate the EU Fiscal rules continued to outweigh over the Euro pair. Trump’s delay in deciding for car import tariffs seemed to short-lived. Fiber traders anticipate in-line Eurozone CPI scores.
A relatively quiet economic calendar leaves Brexit and trade war chatter in focus. Is the trade spat about to get worse and can Theresa May deliver?
Loonie remained seesawed during the day. The Aussie pair continued plunge rally for four days in a row. The Fiber lost hold of its early consolidation mode and slipped to weekly lows near 1.1173 levels.
The European Union is seeking new ways to widen use of the euro and counter the dollar's global dominance, top EU officials said on Thursday, as the bloc tries to salvage Iran's nuclear deal by helping companies bypass U.S. sanctions. Fears they will be hit with sanctions have pushed European corporations to suspend their dealings with Iran after Washington pulled out of the nuclear accord last year. The EU has tried to defend the pact signed with world powers in 2015 by offering firms alternative ways to trade with oil-rich Iran.
The Euro initially tried to rally during the trading session on Thursday but gave back quite a bit of the gains to form a bit of negativity. The market is looking very weak at this point, so it’s very likely we will continue to see some of the same action.
Based on the early price action, the direction of the EUR/USD is likely to be determined by trader reaction to a price cluster at 1.1204. Also watch the price action and read the order flow at 1.1182. This is an important price.
Yesterday, the Fiber had an upshot on Trump’s delay for car import tariffs by six months. Meantime, Italian Dep. PM asked the EU to upgrade the EU fiscal debt levels to 140% of GDP.
The Aussie Dollar touches sub-$0.69 as more stats disappoint. Chatter on trade and a sparse economic calendar will be in focus today.
The Greenback slipped drastically over poor US April Retail Sales figures. USD/CNY pair got elevated earlier the day underpinned weaker-than-expected Chinese data.
The Euro initially tried to rally against the three shooting stars on the chart but struggled a bit during the day on Wednesday as one would expect, with the area being a bit too heavy to overcome.
Based on the early price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the Fib level at 1.1185.
Chinese data shows a slowdown in the economy. Retail sales, investments in fixed assets, industrial production – all these figures significantly below expectations in April.
Chinese Retail Sales & Industrial data reported lower-than-expected figures undermining the Euro pair. The Greenback holds near 97.59 levels post-recovery. The 50-days SMA was signaling a near-term bull call.
Economic data out of China set the tone early. How much of an impact has the trade war really had on both economies? Are we about to find out?
The Brexit deadlock continued to trouble the Cable. Crude prices jumped for the second time in this week following a drone attack on the Saudi State Oil Company.