Back

Forex: USD/CAD extends weekly drop after US confidence

FXstreet.com (Barcelona) - Following the 20-pip rise to the daily high printed at 1.0214 on the US GDP Q1, the USD/CAD failed to hold above its opening price and is in decline below the 1.0200 psychological level after the US Reuters/Michigan consumer sentiment just released. The cross spiked down to 1.0174 low after the surprising rise from 72.3 to 76.4 in April, beating the market consensus of 73.2.

Annualized data had a big improvement from Q4, from 0.4% to 2.5% growth, but came in lower than market consensus of 3.0%. GDP price also failed to meet expectations: up from 1.0% to 1.2%, below 1.4% consensus. The US economic calendar also presented flash Personal Consumption Expenditures, which rising pace eased from 1.6% to 0.9% (consensus of 1.1%) in Q1 (QoQ), and its Core data, that rose from 1.0% to 1.2% as expected. Consumer spending and imports rose 3.2% and 5.4%, respectively. US Reuters/Michigan consumer sentiment is due shortly and is expected to rise from 72.3 to 73.2 in April.

“Hourly supports are now at 1.0182 (intraday low) and 1.0164 (61.8% retracement)”, wrote MIG Bank analysts Bijoy Kar and Luc Luyet, pointing to resistances at 1.0245 (intraday high) and 1.0285 (19/03/2013 high).

Forex Flash: ECB has wriggle room for rate cuts – UBS

According to Research Analyst Gareth Berry at UBS, “We stress that an ECB cut can still affect the exchange rate, though the marginal impact is indeed weaker as we approach the zero-bound for policy. Nonetheless, there is the strong perception in markets, irrespective of where short-dated money market rates are trading, that the ECB has not reached this stage so there is room to move.”
Baca selengkapnya Previous

Forex: USD/JPY extends fall below 98.00 as week ends

The USD/JPY extended its daily fall below the 98.00 handle after the release of US Reuters/Michigan consumer sentiment data, as the economic calendar becomes empty and investors clear out for the weekend. The pair failed again to reach the 100.00 psychological level and it’s at a second corrective movement after the BoJ meeting and its outlook report.
Baca selengkapnya Next