Media reports stated yesterday that president Trump instructed US trade officials for tariffs on additional $100 Billion Chinese imports. The additional tariffs were considered “in light of China’s unfair retaliation” and cited as reasons that China has “repeatedly engaged in practices to unfairly obtain America’s intellectual property”. Chinese media rejected the threat as a ridiculous attempt of intimidation. Should there be further negative headlines about the issue we could see the USD weakening.
EUR/USD traded in a sideways manner with some bearish tones yesterday, testing the 1.2230 (S1) support line. We see the case for the pair to continue to trade in that manner, however, please be advised that the pair may be very sensitive to the US Employment Report data due out today. On the technical side, the pair continues to trade in a sideways motion, within the boundaries set on the 19th of January and is testing the upward trend-line incepted since 10th of April last year. Should the pair come under selling interest we could see it breaking the 1.2230 (S1) support line as well as the aforementioned upward trend-line and aim if not breaching the 1.2100 (S2) support level. Should it come under buying interest we could see it aiming for the 1.2355 (R1) resistance line and even breaching it.
- Support: 1.2230(S1), 1.2100(S2), 1.1920(S3)
- Resistance: 1.2355(R1), 1.2455(R2), 1.2680(R3)
Canadian Prime Minister Justin Trudeau stated yesterday that NAFTA negotiations are moving forward in a significant way. The statement came after US officials made a number of optimistic comments about a preliminary deal on NAFTA. Furthermore, Mexican officials stated that with enough progress, the leaders of the three countries could make an announcement at a regional summit in Peru next week. Should there be further positive headlines for a deal in NAFTA we could see the CAD strengthening albeit yesterday’s comments did not seem to have a significant impact on USD/CAD.
USD/CAD traded in a sideways manner yesterday, testing the 1.2715 (R1) resistance line. We see the case for the pair to continue to trade in that manner however the pair may be heavily influenced by the release of the US and the Canadian Employment data later on today. Should the bulls take the driver’s seat we could see the pair breaking the 1.2800 (R1) resistance level and aim for the 1.2910 (R2) resistance hurdle. Should the bears have the upper hand we could see the pair trading south breaking the 1.2715 (S1) support line and aim for the 1.2610 (S2) support barrier.
- Support: 1.2715(S1), 1.2610(S2), 1.2445(S3)
- Resistance: 1.2800(R1), 1.2910(R2), 1.3080(R3)
In today’s other economic highlights:
During today’s European morning we get Germany’s Industrial Output for February while in the North-American session we get the US Employment Report for March, including the Non-Farm Payrolls, figure as well as Canada’s Employment data for March and Canada’s Ivey PMI for March. As for speakers, ECB’s Coeure, BoE Governor Carney, Fed Chair Powell and San Francisco Fed President Williams speak.
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