Mixed Data Mutes Volatility In The Majors

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Mixed Data Mutes Volatility In The Majors

Mixed Data Mutes Volatility In The Majors

The U.S. dollar has had a mixed day against its major counterparts across the currency markets on Tuesday, with the majority of market moving data released during the morning session.

The EURUSD broke through key resistance just above 1.3800 on Thursday last week, as the European Central Bank (ECB) held rates at 0.25% and reinforced the fact that it would not be implementing any new growth policies for the foreseeable future. Despite better than expected non-farm employment data from the U.S. on Friday, the pair remained above resistance and consolidated into Monday’s action.

Tuesday has seen much of the same, with an initial decline during the morning session fueled by disappointing German trade balance data, reported at 17.2B versus a forecast of 17.7B. This decline reversed during the U.S. morning session however, with the U.S. bureau of Labor Statistics reporting JOLTS job openings at 3.97M, higher than the 3.91M reported in February but still falling short of expectations of 4.03M.**relatedarticle**

A similar pattern unfolded in the GBPUSD, which is trading at a 0.08% discount from the day’s open, currently 1.6630. The Sterling took a steep tumble on Monday as Bank of England (BoE) Governor Mark Carney sparked fears that the BoE would lower interest rates in order to stimulate economic activity. The pair broke through the lower trendline of a month-long upwards sloping channel, forging fresh monthly lows at 1.6595 on Tuesday morning. Better than expected manufacturing production data came out of the U.K. however, boosting the sterling and recouping some of the recent losses. The figure came out at 0.4% growth, beating expectations of 0.3% and matching the previous month’s figure.

Elsewhere, after logging gains on Thursday last week on the back of better than expected retail sales and trade balance data, the Australian Dollar (AUD) has weakened against its U.S. counterpart coming out of the weekend and during Monday/Tuesday’s action. The pair currently sits at key support at 0.9008, down 0.14% for the day as disappointing Chinese data fuels speculation of an Asian economic slowdown.

To contact the reporter of this story: Samuel Rae at samuel@forexminute.com