Today the focus is on Johnson & Johnson vaccine worries, lofty stocks, and Japanese trade vs. COVID.
The British Average Earnings Index+Bonus for February will be released. Forecast: 4.8%. If the data is lower than expected the GBP will receive a negative push.
Assets to trade: GBP/USD, GBP/CAD, AUD/GBP
Last week, U.S. health regulators recommended that the use of the Johnson & Johnson vaccine be paused after six cases of rare brain blood clots, accompanied by low platelet levels, were reported in women following vaccination, out of some 7 million people who have received the shot in the United States. Affects USD
European stocks inched higher on Monday, extending their record-setting rally, as optimism about a solid start to the earnings season offset a worrying resurgence in COVID-19 cases globally. Affects CAC 40
Japanese companies think the country will suffer a fourth round of coronavirus infections, with many bracing for a further blow to business. Affects JPY
British home seller asking prices jumped by 2.1% in the five weeks to April 10, only the second time in five years that prices have risen by more than 2% from one month to the next. Affects GBP
Japan’s exports posted their strongest growth in more than three years in March, led by a surge in China-bound shipments. Affects JPY
The Japanese economy has been recovering slowly, but the fears of upcoming outbreaks keep hopes in check. As exports rise and the workforce begins to normalize the Yen should claw back some strength.
The pair is trading in a pennant and will likely break upwards.
The pair is testing its resistance level around 1.748, and will continue to climb if it breaks the line.
The pair has bounced off of its rising support level and is climbing.