Market News & Analysis
Monday May 04 FX Market Wrap - EUR/USD in focus
Gary Christie May 5, 2020 4:53 AM
Monday May 04 FX Market Wrap - EUR/USD in focus
The US Dollar was bullish against most of its major pairs on Monday with the exception of the AUD and JPY. On the economic data front, Factory Orders dropped 10.3% on month in March (-9.7% expected), from a revised -0.1% in February. Durable Goods Orders fell 14.7% on month in the March final reading (-14.4% expected), from -14.4 in the March preliminary reading. On Tuesday, the Trade Deficit for March is expected to increase to 44.2 billion dollars on month, from 39.9 billion dollars in February. Markit's U.S. Services Purchasing Mangers' Index for the April final reading is expected to remain at 27.0 on month, in line with the April preliminary reading. Finally, the Institute for Supply Management's Non-Manufacturing Index for April is expected to decline to 37.8 on month, from 52.5 in March.
The Euro was bearish against all of its major pairs. In Europe, research firm Markit has published final readings of April Manufacturing PMI for the Eurozone at 33.4 (vs 33.6 expected), for Germany at 34.5 (vs 34.4 expected) and for France at 31.5 (as expected). The Eurozone Sentix Investor Confidence Index for May was released at -41.8 (vs -28.0 expected).
The Australian dollar was bullish against most of its major pairs with the exception of the JPY.
Regarding major FX pairs,
• EUR/USD fell 79pips to 1.0902 the day's range was 1.0896 - 1.0986 compared to 1.0935 - 1.1018 the previous session.
• GBP/USD declined 65pips to 1.2441 the day's range was 1.2406 - 1.2516 compared to 1.2483 - 1.2601 the previous session.
• USD/JPY fell 20pips to 106.71 the day's range was 106.64 - 107.07 compared to 106.61 - 107.41 the previous session.
• USD/CHF rose 41pips to 0.9655 the day's range was 0.9609 - 0.9663 compared to 0.9589 - 0.9669 the previous session.
• AUD/USD gained 6pips to 0.6424 the day's range was 0.6373 - 0.6435 compared to 0.6410 - 0.6512 the previous session.
• USD/CAD increased 5pips to 1.4094 the day's range was 1.4051 - 1.4152 compared to 1.3930 - 1.4110 the previous session.
• The dollar index jumped 0.47pt to 99.551 the day's range was 99.087 - 99.599 compared to 98.645 - 99.214 the previous session.
FX pair in focus,
The big mover today was in the EUR/USD currency pair having declined appx. 79 pips. An interesting setup is coming into play. The pair remains supported by a rising trend line and key overlap support at the 1.089 pivot level. Traders are anticipating a rebound at 1.089 with a possible continuation higher to retest 1.093 and 1.095 in extension. A break below key support at 1.089 may pressure the EUR/USD down to retest 1.086 support and 1.082 in extension.
Source: GAIN Capital, TradingView
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