On Wednesday morning, the major currency pair is consolidating, waiting for new signals to grow. The current quotation is 1.1870.
Capital markets kept on taking the profit in the USD after quite a productive March. Otherwise, it is hard to find any explanations to the pullback in the USD: there has happened nothing bad to it, quite the opposite. However, investors might have got tired of a lengthy rally and use this pause to cool the pair down a bit.
Events in the macroeconomic calendar are still rather scarce. Yesterday, the EU published the Sentix Investor Confidence index for April: it had grown to 13.1 points from 5.0 points previously. It had been expected to reach 6.8 points only. This is the highest index value of the last two years. It turns out that the extension of lockdowns in certain European countries do not influence investors’ behavior in any way – they must have long got used to this or must be expecting nothing else. Sentix comments that in April, the European economy started catching up with what it missed and the imbalance of expectations and reality will be corrected. If so, other macroeconomic indices have bright perspectives. Naturally, this is an important stimulus for the euro.
Meanwhile, the labor market remains in trouble. The European unemployment rate in February amounted to 8.3% while the previous result was revised from 8.1 to 8.3%. This is not the best possible news but with all the lengthy lockdowns, it would be naïve to wait for anything better.
Today there will be more trading news. For example, the EU and some of its particular members will publish the PMI in services in March. In the afternoon, the USA will present consumer crediting volume in February and the minutes of the previous meeting of the Fed.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.