New Zealand is not saying no to directly monetizing its debt; the U.S. is banning immigrants (even legal ones!), and a dictator’s health may or may not be in “grave danger.”
And that was just today’s Asian session!
As lively as the last couple of hours were for comdoll traders, though, I have a feeling that focus will soon turn to the European currencies.
But first, let’s take a look at the major headlines so far today:
Currency Snapshot:
Fresh Market Headlines & Economic Data:
- U.S. Senate moves toward possible Tuesday coronavirus vote
- Trump to impose immigration ban in bid to tackle coronavirus
- Trump says he’ll add to oil reserve and eyes Saudi shipments
- Kim Jong-un illness rumours denied amid intense speculation
- RBA’s Lowe: Australia’s economy to shrink 10% in first half of 2020
- RBA minutes hint loose policies to remain in the foreseeable future
- RBNZ is proposing the removal of mortgage loan-to-value ratio (LVR) restrictions
- NZD drops as RBNZ’s Orr hints openness to direct monetization of government debt
- Nikkei dips as oil woes add to pandemic fears ahead of earnings
Upcoming Potential Catalysts on the Economic Calendar:
- Switzerland’s trade balance at 6:00 am GMT
- U.K.’s labor market numbers at 6:00 am GMT
- Germany’s ZEW economic sentiment at 9:00 am GMT
- Canada’s retail sales at 12:30 pm GMT
What to Watch: EUR/GBP
In a few hours the U.K. will publish its labor market numbers for the month of March. There could be as many as 175,000 new jobless claimants and average earnings could only gain by 3.0% (from 3.1%) even as unemployment stays at 3.9%.
Meanwhile, the euro zone will publish a couple of economic sentiment reports.
If the U.K.’s labor data turn out to be much weaker than what analysts are expecting, then EUR/GBP could break above its .8745 1-hour resistance and firmly leave the 200 SMA behind.
The .8780 and .8800 levels would make for good profit targets for the bulls.
If the pound finds buyers, however, or if sentiment in the euro zone is more sour than many had predicted, then we could see EUR/GBP hold its .8745 resistance and maybe revisit its .8700 or .8680 previous areas of interest.
