EUR/USD clinches highs around 1.0820
The selling pressure around the Dollar is picking up pace once again in the European morning, lifting EUR/USD to fresh tops in the 1.0820 area.Spot met extra buying interest following a bout of USD-selling on Thursday, advancing to the critical resistance band around 1.0820/50, where sit a Fibo retracement and October/March?15 lows.USD in the meantime is extending its leg lower to the 99.20 area, posting new multi-week lows as the bearish sentiment remains everything but unabated. Catalysts for the down move, however, remain unclear for the time being. Looking ahead, speeches by ECB?s President M.Draghi and Board Members P.Praet, B.Coeure, J.Dickson and I.Angeloni should keep investors entertained ahead of second-tier releases across the pond: Initial Claims, Non-farm Productivity and IBD/TIPP index.The pair is now gaining 0.40% at 1.0812 facing the next up barrier at 1.0820 (50% Fibo retracement of the Nov-Jan drop and low Mar.10 2016) ahead of 1.0848 (low Oct.25 2016) and then 1.0873 (high Dec.8 2016). On the other hand, a breakdown of 1.0729 (low Feb.1) would open the door to 1.0681 (low Jan.31) and finally 1.0665 (20-day sma).
GBP/USD regains poise, nears 1.2700 ahead of PMI, BOE
The cable picked-up some strength post-European and witnessed a renewed uptick to fresh seven-week tops of 1.2688, although maintains its upside consolidative mode ahead of the UK construction PMI data and BOE?s ?Super Thursday? events.The major now extends its advance in a bid to regain 1.27 handle as markets expect upward revision to the inflation forecasts in the BOE Quarterly Inflation Report (QIR) due to be published along with the policy decision, which is widely expected to be a non-event.The latest leg higher in the GBP/USD pair can be also attributed to a renewed bout of selling interest seen in the greenback versus its main rivals.The immediate focus now remains on the UK construction PMI and BOE verdict for impetus on the GBP, while sterling will also get influenced by the Brexit white paper that will be published later today.
USD/JPY attention shifted to 111.98 Commerzbank
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair remains under pressure and a test of 111.98 cannot be ruled out.?USD/JPY is under pressure and capable of retesteting the 38.2% retracement at 111.98 area and the 112.02 April high. This is stronger support and we note that the recent move lower continues to indicate that this is the end of the corrective move. As a consequence is side lined very near term and we suspect will again attempt to recover. Initial resistance lies at 115.34 (imoku 2) and this will need to be regained in order to alleviate downside pressure and reintroduce scope to key short term resistance offered by the 16 month resistance line at 118.21?.?Only below 111.98 would trigger losses to the base of the cloud, which lies at 109.92 and, if seen, we look for this to hold (this is also the 50% retracement of the move up from November)?.
USD/CAD flirting with 1.30 psychological mark
The USD/CAD pair came under renewed selling pressure on Thursday and has now moved on the brink of breaking below 1.30 psychological mark.The pair on Thursday failed to build on to early tepid recovery move, which got an additional boost from impressive ADP report and upbeat US ISM manufacturing PMI, and revered from 1.3100 handle after the FOMC statement receded expectations of faster Fed rate-hike actions in 2017.Against the backdrop of not so hawkish Fed, coupled with recent comment on strong dollar from the new Trump administration, triggered a fresh wave of US Dollar weakness on Thursday and collaborated to the pair's downslide on Thursday.However, negative sentiment around oil markets, with WTI crude oil trading with modest losses, seems to assist the pair to hold above 1.30 mark, at least for the time being.Later during NA session, the release of weekly jobless claims and prelim nonfarm productivity / labor cost from the US would now be looked upon to grab some short-term trading opportunities, ahead of the keenly watched NFP data on Friday. Sustained weakness below 1.30 psychological mark is likely to accelerate the slide back towards nearly five-month lows support near 1.2970 region, touched on Tuesday. A follow through selling pressure below 1.2970 level would turn the pair vulnerable to extend its downward trajectory further towards 1.2930-25 horizontal support. On the upside, recovery above 1.3030 level is likely to get extended towards session high resistance near 1.3050 region. A clear break above 1.3050 resistance now seems to assist the pair back towards reclaiming 1.3100 handle.
Gold holding steady at multi-day tops
Gold extended post-FOMC recovery move from sub-$1200 mark and touched a multi-day high level of $1217, before retracing a bit to $1214-15 region.On Thursday, the yellow metal reversed stellar ADP report-led slide to $1198 level after the FOMC monetary policy statement tapered investors' expectations of steeper Fed rate-tightening cycle in 2017. The not so hawkish Fed, against the backdrop of ongoing worries over Trump's policies, weighed heavily on the greenback, with the key US Dollar Index testing its lowest level since mid-November and benefitting dollar-denominated commodities - like gold. Meanwhile, the prevalent risk-off mood is also boosting demand for traditional safe-haven assets, including gold, and collaborating to the metal?s up-move on Thursday. Focus now turns to BoE's Super Thursday, which might trigger some volatility in markets and help investors derive the commodity?s safe-haven demand. Investors, however, will remain focused on Friday's key jobs report from the US, which would provide fresh clues over the metal's next leg of directional move. Immediate upside resistance is pegged near $1218-20 region above which the commodity seems all set to head towards 100-day SMA resistance near $1227 region, en-route $1233 resistance (Nov. 16 high). On the flip side, $1210 level now seems to protect immediate downside below which the metal is likely to turn vulnerable to head back towards retesting $1200 psychological mark support.
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