The main event of this week was the release of the U.S. labour market data for March on Friday. The data was mixed but showed that the U.S. labour market continued to improve. Wage growth was better than expected in March. That could add to the inflation pressure.
The U.S. manufacturing sector seems to recover, according to Markit Economics' and the Institute for Supply Management's manufacturing purchasing managers' indexes.
It is unlikely that the Fed will raise its interest rate in April as the recent U.S. economic data would not be enough to justify an interest rate hike this month. But if the U.S. economy continues to improve, the Fed will likely raise its interest rate in June as some Fed officials mentioned this week.
The Fed Chairwoman Jante Yellen said in a speech this week that the Fed should be cautious in raising its interest rate but added that an interest rate hike was possible in each monetary policy meeting.
Other Fed officials also noted that the Fed should be cautious in raising its interest rate.
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. News reported on Friday that Saudi Arabia might not agree to freeze its oil output. Saudi Arabia's deputy crown prince Mohammed bin Salman said in an interview with Bloomberg that the country would only freeze its oil output if Iran and other major oil producers will participate in such deal. It remains exciting until the meeting.
Low oil prices and a weak global economic growth are likely to weigh on the U.S. economy.
It is likely that the currency pair EURUSD will rise toward the resistance level at $1.1500, if there are be negative news from the U.S. or there are 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 $1.1300 or $1.1200.
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. 69.66% 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.
© 2011-2023 TeleTrade-DJ International Consulting Ltd
This website is operated by Teletrade-DJ International Consulting Ltd, which 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. Teletrade-DJ International Consulting Ltd is located at 88, Arch. Makarios Avenue, 2nd floor, Nicosia Cyprus.
The company operates in accordance with the 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. Teletrade-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.
Teletrade-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.
Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69.66% 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.