Euro is stabilizing down and the markets are waiting for the NZD interest rate decision and the central bank’s press conference today

US trading session turn around sent mixed signals to Asian session traders, which saw consolidation across the board.

Euro is stabilizing down and the markets are waiting for the NZD interest rate decision and the central bank’s press conference today

Euro is stabilizing down

US trading session turn around sent mixed signals to Asian session traders, which saw consolidation across the board.

The Asian trading session was devoid of any catalysts, which led to a muted session following the US session increase in risk appetite.

The kiwi failed to find any support from better-than-expected jobs data printed earlier, with popular expectation is that the New Zealand higher interest rates along with a modest inflation will be enough to force the RBNZ to jolts its currency later today.

The Kiwi employment rate increased to 0.5% QoQ in Q4, slowed from Q3’s 2.2% QoQ but bested expectation of 0.4% QoQ. The unemployment rate dropped to 4.5% down from 4.6% and was better than expectation of 4.7%

Asian equities are consolidating following the previous session sell-off, with the Nikkei and the Australian markets on the advance, while Chinese and South Korea equities counter earlier gains.

DOW initially dived to 23778.74 but rebounded to close up 567.02 pts or 2.33% at 24912.77. S&P 500 recovered 46.2 pts or 1.74% to 2695.14. NASDAQ also regained 148.35 pts or 2.13% to 7115.88.

The Japanese Yen remained the strongest currency for the week so far despite earlier retreats.

The EC might request the UK to pay a higher than agreed Brexit bill according to a draft document. There would be a demand to “cover the financing, during the transition period, of the relevant Common Foreign and Security Policy and Common Security and Defense Policy agencies or operations on the basis of the same contribution key as before the withdrawal date”.

As for commodities, U.S. West Texas Intermediate (WTI) crude futures were at $63.98 a barrel. That was up 59 cents, or 0.93% percent, from their last settlement. Brent crude futures were at $67.50 per barrel, up 64 cents, or 0.96%, from the previous close.

Outlook:

Moving ahead, investors would look forward to the European Commission’s economic growth forecast report, scheduled to release in a few hours.

Trader’s View:

EURUSD is expected to find support at 1.2320, and a fall through could take it to the next support level of 1.2255. The pair is expected to find its first resistance at 1.2440, and a rise through could take it to the next resistance level of 1.2495.

 

EURUSD: EUR/USD is still staying in consolidation below 1.2535 and intraday bias remains neutral.

EUR/USD

GBPUSD: Intraday bias in GBP/USD remains on the downside for the moment.

GBP/USD

USDCADUSD/CAD lost some upside momentum ahead of 1.2589 resistance and intraday bias is turned neutral first.

USD/CAD

USDCHF: No change in USD/CHF’s outlook despite breaching 0.9390 minor resistance. Intraday bias stays neutral first.

USD/CHF

Now is your chance to make a profit!

Open an account here!

 

***Information contained in this newsletter are gathered from third parties and should not be regarded in any way as trade advice or recommendations by CM Trading. CM Trading does not recommend or advise traders or investors in their decision making but merely provides information from the market for its clients as additional information is made available as per the events occurring in the financial markets.

 

HIGH RISK WARNING:

Trading Foreign Exchange (Forex) and Contracts for Differences (CFD’s) is highly speculative, carries a high level of risk and may not be suitable for all investors. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin.

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