Morning brief for April 6

Morning brief for April 6

2019-11-11 • Updated

Traders were toiling like galley slaves overnight as there were plenty of economic releases that led to some intraday moves. ADP payrolls showed a gain of 263K vs consensus 184K.  It is a great result for the current point of the business cycle, and since the correlation between official and ADP prints has improved in the past months, we might wait for something like “the data beats market expectations” from Friday’s NFP.

Non-manufacturing ISM was worse than expected. Then, there was the FOMC Minutes showing that the Fed is going to trim its $4.5 trillion balance sheet well into the end of this year, or even earlier. This was interpreted as implying less need for Fed’s rate increases as a phasing down of the reinvestment policy can act as a de facto tightening.

There was also a disappointing headline in the news. Senate Majority Leader Paul Ryan said that the House, Senate and Mr. Trump are definitely not on the same wavelength with regard to tax policy. So, It would take more time for policymakers to decide on the tax reform than on the repeal of Obamacare bill (which is still not resolved). The English of this is there won’t be any repeal of healthcare, no wall, no lower corporate tax rates in the near-term. It seems that we will have to arm ourselves with lots of patience.  

This session will be as busy as previous one (mid-week time, what else to expect from it). There will be the much-hyped first meeting between Xi and Trump. The US President might touch upon China’s currency manipulations and unfair trade policy, or might not if we believe on his bare word addressed to FT journalists (in the recent interview, Trump told that he would prefer not to talk about tariffs at the upcoming meeting with Xi). North Korea is likely mentioned – especially after yesterday’s missile test.

EUR/USD ticked up in the course of Tokyo session from 1.0667 to almost 1.0690. The downward pressure is still present though, another drop towards the 1.0595 support is not ruled out until prices manage to test 1.0730/1.0770 levels successfully. Euro watchers will be waiting for the ECB President Draghi’s speech which is due at 9:00 pm MT time.

Aussie/greenback outlook is neutral for the present moment. The quotes are trading around 1.0765. The immediate pressure is still on the downside towards 0.7615.  A break of resistance at 0.7650 will allow us to talk about a further upsurge towards 0.7660. The Australian economic calendar is light. The pair is likely driven by USD fundamentals today.

Kiwi was one of those who little changed on the session, although it did take a shot to rise higher. NZD/USD is now ranging within 0.6975 – 0.6995 levels.

USD/JPY was lower on the session from 112.20 to 111.65. The support at 111.50 is still intact. If it is broken the quotes will slide towards the restraint at 110.00. The technical outlook will change from neutral to bullish if prices go out of their 110.00/112.20 consolidation range.

USD/CAD dropped to 1.3295 in the course of this week due to the recent rally in oil prices. Brent oil futures hit $55.06 yesterday but then skipped some points after US government reported a sudden increase in US crude inventories. Loonie watcher should focus their attention on Canadian building permits coming out at 12:30 pm today. 

Similar

Oil: Russia-Ukraine Crisis Could Boost Oil Prices
Oil: Russia-Ukraine Crisis Could Boost Oil Prices

Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...

WTI and Brent React To a Key Pivot
WTI and Brent React To a Key Pivot

Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...

Latest news

USD: Powell Speaks on Cutting Interest Rates
USD: Powell Speaks on Cutting Interest Rates

Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...

WTT: Currency Pairs To Trade In April
WTT: Currency Pairs To Trade In April

Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

 1
 93
 355
 213
 1684
 376
 244
 1264
 672
 1268
 54
 374
 297
 61
 43
 994
 1242
 973
 880
 1246
 375
 32
 501
 229
 1441
 975
 591
 387
 267
 55
 246
 673
 359
 226
 257
 855
 237
 1
 238
 1345
 236
 235
 56
 86
 61
 61
 57
 269
 242
 243
 682
 506
 225
 385
 53
 357
 420
 45
 253
 1767
 1809
 593
 20
 503
 240
 291
 372
 251
 500
 298
 679
 358
 33
 594
 689
 241
 220
 995
 49
 233
 350
 30
 299
 1473
 590
 1671
 502
 224
 245
 592
 509
 39
 504
 852
 36
 354
 91
 62
 98
 964
 353
 44
 972
 39
 1876
 81
 962
 7
 254
 686
 850
 82
 965
 996
 856
 371
 961
 266
 231
 218
 423
 370
 352
 853
 389
 261
 265
 60
 960
 223
 356
 692
 596
 222
 230
 262
 52
 691
 373
 377
 976
 382
 1664
 212
 258
 95
 264
 674
 977
 31
 599
 687
 64
 505
 227
 234
 683
 672
 1670
 47
 968
 92
 680
 970
 507
 675
 595
 51
 63
 64
 48
 351
 1787
 974
 262
 40
 7
 250
 590
 290
 1869
 1758
 590
 508
 1784
 685
 378
 239
 966
 221
 381
 248
 232
 65
 421
 386
 677
 252
 27
 500
 34
 94
 249
 597
 268
 46
 41
 963
 886
 992
 255
 66
 670
 228
 690
 676
 1868
 216
 90
 993
 1649
 688
 256
 380
 971
 44
 1
 1
 598
 998
 678
 58
 84
 1284
 1
 681
 2
 967
 260
 263
00:00
00:00
00:00
01:00
02:00
03:00
04:00
05:00
06:00
07:00
08:00
09:00
10:00
11:00
12:00
13:00
14:00
15:00
16:00
17:00
18:00
19:00
20:00
21:00
22:00
23:00
23:00
23:00
00:00
01:00
02:00
03:00
04:00
05:00
06:00
07:00
08:00
09:00
10:00
11:00
12:00
13:00
14:00
15:00
16:00
17:00
18:00
19:00
20:00
21:00
22:00
23:00

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera