All eyes are on the US employment data to be released tonight, which will provide further guidance on the economic condition in the US. The downside pressure on the USD continues after FED’s Yellen speech on Wednesday. With her talk suggesting rates to remain low for an extended period of time, even a strong NFP tonight might not be enough to bring back the confidence to USD buyers. Furthermore, FED’s Evans called for continued caution due to low inflation yesterday, which drags more attention to tonight’s data release.
Indicative is the fact that USD is the worst performing currency in the month of March. In the contrary, Euro, Aussie and Kiwi all gained for the fourth consecutive day breaking above March highs, rallied up to 1.1410, 0.7722 and 0.9694 respectively. Cable traded high and reached 1.4456, but the rally stalled on renewed Brexit fears and the market’s efforts to search for direction after some larger volatilities.
Financial markets have appreciated the dovish stance of Yellen and as a result stock markets have enjoyed 2 days of solid rallies. Due to the rise in stock market, gold has moved inversely to them, dropping from the $1255 high recorded after Yellen’s Speech. Gold is underpressure since investments funds and traders are moving money into equities and away from “safer” investments. OIL as well has suffered losses since last week from $41.81/bbl high to $37.77/bbl yesterday. However, a further weakening in greenback assisted it to recover from the loss a bit overnight and the price of OIL at the time of writing is at $38.29/bbl.
Today we have the first set of PMI data coming from China during Asian session, which will draw on traders’ attention ahead of the monthly employment report out of the US tonight.
To help you maximize your potential profits EUR/USD spreads on the easyMarkets Platform will be reduced to 1.6 pips and Gold spreads will be reduced to 40 pips from 1100-1400GMT.
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