Today the focus is on German growth forecasts, Japan COVID measures, and The UK vs. The US.
The US CB Consumer Confidence report for April will be released. Forecast: 113.0. If the results are lower than forecast the USD could receive negative pressure.
Assets to trade: USD/SGD, NZD/USD, AUD/USD
The start to the week was quiet as investors refrained from taking on large positions before a two-day Fed meeting that will begin on Tuesday and the impending release of quarterly gross domestic product numbers for the United States. Affects S&P 500
The dollar nursed losses against most currencies on Monday amid speculation that U.S. Federal Reserve Chairman Jerome Powell will shun talk of tapering bond purchases at a policy meeting this week. Affects USD
The German government has raised its growth forecast for this year to 3.5%, compared with the 3% growth it was expecting back in January, justified by a stronger-than-expected fourth quarter. Affects EUR
According to Goldman Sachs, Britain looks set to see faster economic growth than the United States this year as the country races ahead with its vaccination program after its slump in 2020. Affects GBP
Japan’s services prices showed signs of a pick-up in March as advertising and transportation fees rose, suggesting the economy was recovering moderately, but the third state of emergency, rolled out on Sunday to combat a resurgence of new COVID-19 infections is likely to hurt consumption. Affects JPY
The UK has been quick to recover since the last round of COVID-19 restrictions were lifted. Though the US has seen a rise in its economic activity fear are rising that the market may be moving ahead of the country, which is cause for concern among investors.
The pair is trading in a channel and will likely continue to in the near future.
Prices are trading in a Pennant and will break out in either direction.
Euro Stoxx 50
The European index is testing its newest resistance level, if it breaks upward, the next resistance level will be the previous high.