GBP/JPY under a bear attack, nears 130 handle

Sterling bears are flexing their muscles after the release of UK manufacturing PMI release, courtesy of which the GBP/JPY cross has extended losses to 160.23 levels. 10-DMA is now resistanceCross has re-established 10-DMA as a resistance. GBP is being ... [...]

WSE: Mid session comment

The mood in Europe, with the entry into the southern phase of trading, have not improved and indices oscillate at trading minima, or deepen as in the case of France. Traditionally, the strongest is the German market, but it only leads to consolidation... [...]

AUD/USD: Upside capped by 0.7680/85, US jobs eyed

The AUD/USD pair is extending its phase of consolidation in the mid-European session, with the bulls taking a breather heading closer towards the crucial US labour market data.

AUD/USD trades below daily pivot at 0.7676

Currently, the AUD/USD pair trades 0.14% higher at 0.7668, unable to advance through 0.7680/85 band post-European open. The Aussie faces offers on every attempt towards 0.77 handle as the steep losses seen in the oil and European stock markets continue to weigh on the sentiment around the higher-yielding currencies such as the AUD.

However, the bulls find some support from a broadly lower US dollar as also from the auspicious Chinese PMIs readings. Looking ahead, all eyes remain on the US employment report due ahead of the US open, while next week’s RBA policy decision is also eagerly awaited for further momentum on the pair.

AUD/USD Levels to watch

The pair finds the immediate resistance at 0.7700/07 (round number/ Mar 30 High) above which gains could be extended to the next hurdle located at 0.7723/41 (Mar 31 High/ July 2015 High). On the flip side, the immediate support located at 0.7634/29 (5-DMA/ daily S1/). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7581/70 (1h 200-SMA/ 20-DMA).

The AUD/USD pair is extending its phase of consolidation in the mid-European session, with the bulls taking a breather heading closer towards the crucial US labour market data.

(Market News Provided by FXstreet) [...]

GBP/USD keeps falling, tumbles to 1.4280

GBP/USD is now accelerating its daily downside, dropping to fresh lows in the 1.4280 area ahead of US Payrolls.

GBP/USD amidst ‘Brexit’ and Payrolls

The sterling is falling to fresh 3-day lows vs. the greenback today following a sharp appreciation of EUR/GBP, while ‘Brexit’ jitters continue to weigh on investors’ sentiment.

GBP has also suffered the unexpected drop in UK’s manufacturing PMI during March, adding to the downside.

Next on tap for Cable will be the US calendar, with Non-farm Payrolls, ISM Manufacturing and the Reuters/Michigan index taking centre stage.

GBP/USD levels to consider

As of writing the pair is down 0.46% at 1.4295 and a break below 1.4281 (low Ap.1) would open the door to 1.4254 (61.8% Fibo of 1.3833-1.4517) and finally 1.4051 (low Mar.18). On the other hand, the next up barrier aligns at 1.4451 (high Mar.31) followed by 1.4517 (high Mar.18) and then 1.4565 (100-day sma).

Trade the nonfarm payrolls & US Employment reports - Live Coverage & Analysis

GBP/USD is now accelerating its daily downside, dropping to fresh lows in the 1.4280 area ahead of US Payrolls...

(Market News Provided by FXstreet) [...]

Brent oil drops on Saudi’s hardline stance

Oil prices dropped, with Brent now trading well below $40 handle after Saudi’s crown price said his nation would freeze output only if Iran and other nations do so.

Rejected at 10-MA

Futures were rejected at 10-DMA level of $40.42 following which prices retreated to $40 levels. Further losses were triggered after Saudi’s hardline stance hit the wires. Another report showed OPEC is planning to address supply glut issue without reducing or freezing output.

However, markets are unconvinced about the effectiveness of these measures. Hence, oil contracts are being offered. Across the pond, WTI is trading 2.27% lower at $37.50/barrel.

Brent Technical Levels

Brent currently trades around $39.50; down 1.88% on the day. The immediate support is seen at $39.25 (rising trend line support), under which losses could be extended to $38.92 (23.6% of Jan low-Mar high). On the other hand, a break above $39.80 (5-DMA) above which prices may have a re-look at $40.42 (10-DMA + daily high).

Oil prices dropped, with Brent now trading well below $40 handle after Saudi’s crown price said his nation would freeze output only if Iran and other nations do so.

(Market News Provided by FXstreet) [...]

US jobs report will be the focus for markets – BBH

Research Team at BBH, suggests that the March US jobs report will be the focus for markets today.

Key Quotes

“Consensus is 205k vs. 242k in February. We think there is risk of an asymmetric market reaction. That is, a strong jobs number probably won't impact the bond market or the dollar very much since Yellen has already played her dovish hand. However, a weak number could see further selling of the dollar and a rally in the bond market.

During the North American session, we will get the March ISM manufacturing PMI, February construction spending, March auto sales, and final March Michigan consumer sentiment. Of note, the 1- and 10-year inflation expectations in the Michigan report will be of interest. Both stood at 2.7% in the preliminary report. The Fed’s Mester speaks in New York.”

Research Team at BBH, suggests that the March US jobs report will be the focus for markets today.

(Market News Provided by FXstreet) [...]

USD still vulnerable ahead of NFP report – MUFG

Lee Hardman, Currency Analyst at MUFG, notes that the US dollar continues to remain on the defensive ahead of the release today of the latest non-farm payrolls report.

Key Quotes

“The recent dovish shift in the Fed policy stance which has placed greater emphasis on downside risks to the outlook for growth and inflation is dampening potential support for the US dollar from the recent improvement in actual US economic data. The Fed’s new policy stance should limit the potential for the US dollar to derive support as well today from the latest non-farm report even if it reveals that the US labour market continues to improve.

We have been surprised by the strength of employment growth early this year following very robust job gains in the final quarter of last year. We would have expected greater payback weakness in Q1 which has not yet materialized suggesting that the underlying trend in employment growth remains firmer than we had expected.

Nonetheless even if employment growth remains solid in today’s report it is unlikely on its own to offer much support for the US dollar. The latest earnings figures will be more important for the outlook for Fed policy as highlighted in Fed Chair Yellen’s speech from earlier this week in which she stated that the Fed must continue to “monitor incoming wage and price data carefully”.

Earnings growth will have to rebound more strongly as well after weakness in last month’s report to offer more support for the US dollar. If there are any disappointing parts to the report, it will reinforce US dollar weakness in the near-term.”

Lee Hardman, Currency Analyst at MUFG, notes that the US dollar continues to remain on the defensive ahead of the release today of the latest non-farm payrolls report.

(Market News Provided by FXstreet) [...]

UK manufacturing PMI picked up slightly to 51.0 – TDS

Research Team at TDS, notes that the UK manufacturing PMI picked up slightly to 51.0, below both their and the markets’ expectations for a pick-up.

Key Quotes

“Despite a sharp depreciation in sterling since November (which should benefit the sector), employment continues to contract in the sector, and worries about the EU referendum are likely weighing on business confidence. New business did improve, and helped support output at its previous level.”

Research Team at TDS, notes that the UK manufacturing PMI picked up slightly to 51.0, below both their and the markets’ expectations for a pick-up.

(Market News Provided by FXstreet) [...]

EUR/NZD analysis for April 01, 2016

Recently, EUR/NZD has been moving upwards. The price tested the level of 1.6521. Anyway, EUR/NZD is in downtrend and I found a bearish flag formation, which is a sign that we may see further bearish continuation. Watch for potential breakout of berish ... [...]