Major Currencies Overview
Unlike in the other week, the Greenback managed to land a spot in the top three best-performing currencies last week as profit-taking and easing trade war jitters came into play.
Looking ahead, the action could heat up in the next few days as NFP Friday approaches as traders could place their bets on when the next Fed hike might be. Read more.
The Loonie joined its North American buddy, the Greenback, in the winners’ circle for the previous week even though crude oil actually took hits.
Canada also has its jobs report lined up for this coming Friday, just after the trade balance release on Thursday and another batch of crude oil inventory reports earlier on. Read more.
EUR & CHF
A couple of ECB officials had some hawkish words to say, lifting the shared currency’s spirits earlier in the week, but it failed to sustain the climb ’til the end. Meanwhile, fading risk aversion took its toll on the lower-yielding franc.
European markets will be off to a late start as traders are still off enjoying Easter Monday. Flash CPI estimates due midweek should put the spotlight back on monetary policy biases. Read more.
Sterling returned most of its previous gains to finish the second worst-performing currency of last week. Industry PMIs are due over the next few days, but market watchers might hold out for BOE head Carney’s speech on Friday before taking the pound in a specific direction. Read more.
The pickup in risk-taking from easing geopolitical tensions appear to have buoyed the Aussie higher as traders turned their attention to the meeting between the leaders of China and North Korea.
However, the focus could shift back to AUD fundamentals this week as Australia will print its retail sales report and the RBA will make its monetary policy decision. Read more.
What a comeback for the Kiwi! After being down in the dumps the other week, the New Zealand dollar emerged as the top performer thanks to improving risk sentiment las week.
And without any major catalysts on this week’s docket, the Kiwi could stay sensitive to risk appetite, as well as the outcome of its neighbor Australia’s economic events. Read more.
Charts to Watch:
With the NFP coming up, this pair could be in for directional moves once more and the bounce off the channel resistance suggests a southbound route. Stochastic is also treading lower, so USD/JPY could follow its lead all the way down to the channel support around 104.00 to 104.50.
The Aussie has a few catalysts of its own, so this pair could be an interesting one to play, especially as it tests a make-or-break area at the bottom of its ascending channel. A bounce could take it back up to the top around .8300 or at least until the mid-channel area of interest. A breakdown, on the other hand, could mark the start of a long-term drop.