Analysis and Opinion »

22 April Forex daily review

Sergiy Zlyvko
Share on StockTwits
Published on

The dollar index, despite falling to 79.80 mark in trading in New York was able to fully play regain daily losses. EURUSD from an intraday high of 1.3825 declined to the level of 1.3790 session low. GBPUSD rate at the maximum reached 1.6840 and moved to lateral movement. The single currency has responded decline on weak consumer confidence data from Eurozone and sales of existing U.S. housing market, which were slightly higher than forecast. We did not see consumer confidence as significant event, but it was used to reduce long positions.

Market situation remains uncertain. After the release of statistics from Australia and China, AUDUSD exchange rate fell by 80 points to 0.9295 mark, EURUSD and GBPUSD have grown slightly.

Quarterly inflation in Australia in the 1st quarter amounted to 0.6% and annual – 2.9%, whereas the predicted values were 0.8% and 3.2%, respectively. China’s manufacturing PMI for April from HSBC was 48.3 vs. 48.4 and the previous value of 48.0.

From 7.00 to 8.00 GMT indexes of business activity in the manufacturing and services sectors in the EU will be published. According to forecasts, we expect mixed data. At 8.30 GMT the minutes of the Bank of England meeting will be published. We want to continue to consider the rise of the dollar, but as for Monday and Tuesday, the dollar index was unable to break through resistance at 80 points, today for the first half of the day considering the dollar’s decline, for the second – its growth. If EURUSD will not be able to consolidate above the level of 1.3830, on Thursday we will again consider the rise of the dollar to all currencies.

EURUSD closed the day with slight growth. At 8.45 GMT pair is trading at 1.3845. We’re in DXY section wrote that because the dollar index headways for two days on Wednesday we consider the growth to 1.3845 mark. Maybe we’re too much lifted the euro, but we will ensure whether the euro break 1.3830 on European statistics or not. If the level of 1.3830 will hold bulls, then we can again look at the purpose on 1.3745. Incidentally the drop of AUD may restrain the growth of the pound and the euro.

Amid falling EURGBP cross rate, GBPUSD rose to 1.6840 mark. Now cross rate is adjusting and pressing the pound. GBPUSD is trading at 1.6825. By the main scenario we are considering the growth to the level of 1.6870. Protocols of Bank of England will be key event for the British pound perform. At 8.30 GMT pound can respond to protocols such as the sharp rise or decline. Everything will depend on the distribution of MPC members votes and the Bank of England intentions regarding the future interest rate rises.

Yesterday in anticipation of inflation data, AUDUSD rose to 0.9375. This morning AUDUSD fell by 100 points to 0.9270 mark. It was a reaction to the statistics from Australia and China. Quarterly inflation in Australia in the 1st quarter amounted to 0.6% and annual – 2.9%, whereas the predicted values were 0.8% and 3.2%, respectively. China’s manufacturing PMI for April from HSBC was 48.3 vs. 48.4 and 48.0 the previous value.

Share on StockTwits