FX News Today
- Markets returning after a 4-day Easter break.
- Investors remain cautious ahead of key earnings reports including Amazon, Facebook, Twitter and Microsoft this week.
- Reluctance to push stock valuations out further kept bond markets underpinned during the Asian session.
- Chinese bond and stock markets continued to struggle, on the decreased expectations of future Chinese monetary stimulus since the weekend.
- Ongoing uncertainty about the outlook for world growth is underpinning caution on stock markets amid the deluge of earnings reports this week.
- Energy stocks remained supported as oil prices surged to a 6-month high.
- The front end WTI future is currently trading at USD 66.00 per barrel.
- European stock futures are posting slight gains, in tandem with US futures.
Charts of the Day
Technician’s Corner
- EURUSD crossed below 20-day MA today, with the asset moving bearishly since Asia open. The underpinning of Euro could continue as the spread between the 10-year US and Germa government bond yields rising.
- USDJPY has been stuck inside of 111.50 and 112.20 for more than a week now, struggling over the 112.00 level reportedly due to ongoing Japanese exporter backed selling, while finding support from what have mostly been risk-on conditions of late. Further USDJPY gains this week ahead of the BoJ meeting.
- AUDUSD is in a 5-day decline. It crossed earlier into the lower Bollinger Bands area, indicating the increase of negative bias. Next Support levels at: 0.7107 and 0.7097.
Main Macro Events Today
- New Home Sales –March new home sales are also expected to fall 7.0% to a 620k rate, following a 4.9% increase to 667k in February.
- Canadian Wholesale Sales – February wholesale trade is expected to show a 0.5% expansion in shipment values after the 0.6% gain in January.
Support and Resistance
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Andria Pichidi
Market Analyst
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