Search ForexCrunch

Amid broad-based US dollar pullback and holiday-thinned light trading, the Antipodeans benefited the most, mainly boosted by stronger Chinese industrial profits data and renewed US-China trade optimism. The AUD/USD pair regained poise and tested the recent 0.7060 resistance while the Kiwi jumped back towards the 0.67 handle. Meanwhile, the USD/JPY pair held steady near 111.60 levels amid minimal volatility, as the Japanese traders are away on a week-long holiday break. Further, negative Treasury yields and mixed Asian equities also kept the bulls unmotivated.

Amongst the European currencies, the Cable advanced to near 1.2940 levels amid hopes of a breakthrough heading into the UK cross-party Brexit talks. The Euro remained better bid against its American peer after Sunday’s Spanish general elections vote count turned in favor of the Socialist.

On the commodities front, both crude benchmarks kept losses following the US President Trump’s jawboning while gold futures on Comex headed back towards the 1300 mark amid weak details of the US Q1 GDP report.

Main Topics in Asia

Weekend Press: A big week of insights ahead

China’s industrial profits rebound from four months of contraction

WTI struggles near $62.80 amid mixed data/news

S. Korean FinMin Dong-yeon: Will intervene if forex volatility gets worse

Senior WH Official: US – China talks to resume with significant issues unresolved – Bloomberg

US Treasury Secretary Mnuchin: Trade talks in final laps – NY Times

Spanish Socialist Leader Sanchez: “We will form a pro-European government”

Australia’s opposition Labor lead over government slips ahead of election – Newspoll

China’s 2019 GDP now seen at 6.3% vs. 6.2% previous – Bloomberg Survey

Bets against Euro hit highest level since December 2016

Key Focus Ahead

With a quiet start to a big week ahead, markets now look forward to the Bank of England (BOE) Governor Mark Carney’s speech due at 0810 GMT for a fresh take on the interest rates outlook. Meanwhile, a string of Eurozone consumer and business confidence numbers will be closely eyed at 0900 GMT for fresh EUR trades.

Later in the NA session, the US personal spending, core PCE price index and a few other minority reports will be published at 1230 GMT. The main focus this week remains on the FOMC monetary policy decision and the US payrolls data for the next direction on the US dollar.

EUR/USD: Focus on Spanish political developments and US data

Spanish political uncertainty could cap upside in the EUR. A below-forecast March US Personal Income and Spending will likely yield broad-based USD sell-off.

GBP/USD: 1.2965/70 holds the spotlight, all eyes on Brexit cross-party talks

Lack of market support for the US Dollar (USD) continues to highlight 100-day and 200-day SMA confluence ahead of the cross-party Brexit talks that resume in the UK.

EUR/USD Forecast: would data and the Fed send it to 1.1000?

The upcoming week will be a recharged one, in terms of macroeconomic releases, with a Federal Reserve monetary policy meeting outstanding next Wednesday.  

Gold  Technical Analysis: Bulls looking to $1,303 and trendline resistance

A hold above the taking  20-D EMA exposes the 50-D EMA  at 1292 and the spike  will have shaken out some speculative shorts allowing bulls to focus on a  target of 1303 (23.6% Fibo) with a look in at  the trend line resistance.