This week was fairly quiet until now. There were no key drivers. Market participants were also cautious due to terrorist attacks at the international airport in Brussels.
The U.S. dollar benefited from the quiet of this week. The greenback recovered its losses of last week after the Fed's interest rate decision. Comments by Fed officials supported the U.S. currency. Some Fed officials noted that the Fed could raise its interest rate in April if the U.S. economy continues to improve.
Market participants are awaiting the release of the U.S. personal consumption expenditures (PCE) price index (the Fed's preferred measure of inflation) and labour market data next week. The better-than-expected U.S. data will add to speculation that the Fed could hike its interest rate at its monetary policy meeting in April. It is likely that some Fed officials will support an interest rate hike.
Oil prices remained in focus. Market participants are awaiting the meeting between OPEC and non-OPEC countries, which is scheduled to be in Doha on April 17. Oil producers plan to discuss the freeze of the oil output. News reported this week that Saudi Arabia will join a deal to freeze the oil output regardless of Iran's participation.
Oil supply remained at the high level. An agreement on the freeze of the oil production could help to stabilise the oil market.
It is likely that the currency pair EURUSD will rise toward the resistance level at $1.1300 or at $1.1400, if there will be negative news from the U.S. (especially the weaker-than-expected PCE price index and labour market data) or there will be negative news from China and there are no negative economic data from the Eurozone.
If the U.S. economic data is better than expected and in case of the negative economic data from the Eurozone, the currency pair EURUSD may test the support level at $1.1100 or $1.1000.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.42% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2021 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Telerade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Telerade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.