The Euro staged a strong rebound today after a poor finish to last week. A string of soft regional and Eurozone CPI reads started the Euro off on weak footing Friday. Further pressure was added on strong U.S. data that included Industrial Production, JOLTs Job Opening and Michigan Consumer Sentiment; the Euro finished the week at the lowest level since March 1.
Soybeans and crude oil have the most trending pivot math for the coming week, and all of my tracked symbols have narrow ranges on one or more of daily, weekly, or monthly charts. The Aussie, Pound, Crude, and Gold are range-compressed on all three charts! Breakouts are brewing.
This was another constructive session for the Euro on disappointing U.S. data and drama in Washington. First, Core CPI was in line with expectations at 0.2% MoM and 1.8% YoY, however, this was slower than January and December.
After an eventful week, sentiment among market participants has evidently improved. Perceived safe-haven assets like gold, Japanese yen and Swiss franc, have all come under pressure in recent days, while the global stock indices have bounced back after last week’s falls. Granted, we are not totally out of the woods yet, and equity prices remain overstretched on historical basis, but there’s definitely fewer reasons for investors to fret over than at the start of the week. After all, there’s now urgency from North Korea to denuclearize and Donald Trump has agreed to meet Kim Jong-un face-to-face by May.
All things considered, the Euro reacted in a very quiet manner to today’s news. A strong read on private ADP Payrolls along with better than expected Nonfarm Productivity and Unit Labor Costs supported the dollar this morning.