Today was a win for the euro bulls. The currency started the session on its backfoot, topping at the European open before seeing bad Italian CPI and the worst German Sentiment data since 2012 which led to a poor read on Eurozone Sentiment.
The euro opened the week on a strong note, recovering back to last week’s high near the 1.2450 mark. Price action moved sharply higher on the European open at 2:00 am CT and saw further gains as the U.S. dollar weakened on frothy data and a tweet from President Trump.
The Australian dollar/U.S. dollar currency pair has been coiling for a few weeks now. The bodies of the weekly candlestick bars have been getting smaller as price tested long-term support around 0.7650. This was formerly a major resistance level. In addition, it is also where a long-term bullish trend line comes into play. Thus, the fact that the AUD/USD is holding above this level is significant. Could we now see some range expansion to the upside?
Europe was closed for Easter Monday and the Euro had the lowest volume since the day after Christmas. After opening higher Sunday night and trading more than a halfpenny in the green, the Euro pared all gains to make a new low before settling near the middle of the session’s range.
This is one busy week and the main event, Friday’s jobs report, is set to close things out at 7:30 am CT. The focus has shifted away from job creation and is now on wages. While Non-farm Payroll takes the cake, this is a potent combination throughout the week. Kicking things off is ISM Manufacturing on Monday at 9:00 a.m. Central.
This was a monster session for the Euro gaining almost a penny. The move started early this morning when French GDP beat expectations and picked up further steam on hawkish comments from German Bundesbank President Weidmann. The yen took a bath today after crossing the .9600 mark on Friday for the first time since November 2016. The dollar was surely not culprit today as the yen was the only currency to truly lose ground against it.