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28 Mar 2014
Session recap: can keep a good dollar down
FXStreet (Guatemala) - The last trading day of the week didn’t give us any fireworks displays but we had the EUR rally sharply from the off in North America, with strong equities, the Yen offered and higher bond yields were supporting the dollar.
EUR/USD’s rally slowed up as the day moved on and consolidation has taken place in towards the close in 1.3750/70 levels. On the day, the dollar took hold of the spotlight and post the European data releases, the pair was left for the up and coming week to decide its form for April. Eurozone Consumer Confidence for March printed -9.3 vs expectations of -12.5 while the Economic Sentiment Indicator came in 102.4 vs 101.4 consensus.
For the Yen, there was a surge up towards the 103 handle on levels through 102.50 resistance that were triggered but gravity has been a drag despite the risk-on sentiment present from positive equities and higher US yields. The USD/JPY, with non-trending momentum indicators, is still someway off from the 103.20 mark which comes as a significant target en-route for 105.00.
GBP/USD is slowing up ahead of edge of your seat resistance levels and running on the recent positive leftovers from yesterday’s retail sales figures. However, finishing up at the highs for the week and just sub 1.6650 leaves the dollar open for some further punishment if markets wish to test these barriers again. EUR/GBP is ending 0.8260 and over a big figure lower on the week ahead of Monday's European inflation figures, something to watch.
Main headlines:
Core Personal Consumption Expenditure - Price Index (YoY) arrived 1.1% as expected.
Personal Income (MoM) (Feb) was reading 0.3% vs 0.2% consensus, supporting the dollar.
Consumer Price Index (YoY) (Mar) missed expectations arriving 1.0% vs 1.1% consensus.
Harmonised Index of Consumer Prices (YoY) (Mar) arrived 0.9% and disappointed vs consensus 1.0%.
EUR/USD’s rally slowed up as the day moved on and consolidation has taken place in towards the close in 1.3750/70 levels. On the day, the dollar took hold of the spotlight and post the European data releases, the pair was left for the up and coming week to decide its form for April. Eurozone Consumer Confidence for March printed -9.3 vs expectations of -12.5 while the Economic Sentiment Indicator came in 102.4 vs 101.4 consensus.
For the Yen, there was a surge up towards the 103 handle on levels through 102.50 resistance that were triggered but gravity has been a drag despite the risk-on sentiment present from positive equities and higher US yields. The USD/JPY, with non-trending momentum indicators, is still someway off from the 103.20 mark which comes as a significant target en-route for 105.00.
GBP/USD is slowing up ahead of edge of your seat resistance levels and running on the recent positive leftovers from yesterday’s retail sales figures. However, finishing up at the highs for the week and just sub 1.6650 leaves the dollar open for some further punishment if markets wish to test these barriers again. EUR/GBP is ending 0.8260 and over a big figure lower on the week ahead of Monday's European inflation figures, something to watch.
Main headlines:
Core Personal Consumption Expenditure - Price Index (YoY) arrived 1.1% as expected.
Personal Income (MoM) (Feb) was reading 0.3% vs 0.2% consensus, supporting the dollar.
Consumer Price Index (YoY) (Mar) missed expectations arriving 1.0% vs 1.1% consensus.
Harmonised Index of Consumer Prices (YoY) (Mar) arrived 0.9% and disappointed vs consensus 1.0%.