This week, the majors will be affected by the interest rate decision by the Federal Reserve, NFP, the BOE Meeting, and more events.
Weekly Forex Outlook: April 2-6
The US dollar recovered from the bottom of the range, in which it has been trading since the end of January.
There were some positive factors for the greenback. Firstly, concerns over global trade protectionism eased. Secondly, there was some progress on North Korea’s nuclear program. Plus, investors closed their USD short positions ahead of the end of the quarter.
Of course, as the new quarter begins in April, the USD will no longer have the support of monetary inflows, so it remains to be seen whether the American currency is able to continue strengthening. Pay attention to the technical levels of the USD index: resistance is at 90.50 and support is at 88.20.
USD/JPY rose from 104.60 to 107.00. The pair may rise to 107.60 and 108.50 especially in case of the weekly close above 106.00.
GBP/USD made a pullback down. Notice that there’s a strong resistance at 1.4270 – it’s a 200-week MA. The last time the pair traded above this line was in 2014.
EUR/USD keeps meeting resistance at 1.2450/1.2500 ahead of 1.12550. it’s not likely that the situation will change in the coming days. Focus on support at 1.2200, although a break lower would take some really good news from America.
Britain will release manufacturing PMI on Tuesday.
On Wednesday, await Australian retail sales, the UK construction PMI, euro area’s flash inflation for March, US ADP employment report and ISM services PMI.
Thursday will bring AUD trade balance, GBP services PMI and Canada’s trade balance.
Finally, the first Friday of April, so the US will release NFP, average earnings, and unemployment rate.
Reasons behind the USD's advance, the earnings season in the United States, the outlook for EUR, JPY, Apple, Amazon, and more in this video!
This week we will see two CPIs, five PMIs, and a dozen statements from banks governors from all over the world. Why do you need to follow these releases? Because it is a perfect opportunity for markets to gain volatility and for you to earn on this volatility.
More reports, the start of a rally in crypto, outlook for gold and forex. This week is full of impactful releases, and we are here to trade on them.
Gold is about to break the most significant support. The US dollar index keeps gaining momentum. However, the situation might change this week, and we might see a tiny correction. Investors might return to risk-on and push the US stock market indices and cryptocurrencies to the upside. These and more trade ideas are in our new weekly video! Do not miss it!
This week is likely to be pivotal for many assets, including gold, USD, and several stocks. However, we need to be focused and react fast to the ever-changing environment to get the most from it.