EUR/GBP barely moved the needle amidst thin liquidity conditions on a worldwide holiday.A solid US jobs report pushed recession fears away, as US equity futures showed.
The EUR/GBP advances for two straight days and hits a four-day high of around 0.8790 on a subdued trading session in observance of the Good Friday holiday. The EUR/GBP is trading at 0.8782, registering minuscule gains of 0.04%.
The cash market is closed due to a holiday. However, the US futures market is open, and equities have responded optimistically to the latest round of US economic data and edged higher. The US Nonfarm Payrolls March report was solid, though a whisker below estimates of 240K, at 236K. Some of the highlights of the report came above estimates. The Participation Rate climbed to 62.6%, above forecasts of 62.4%, while the Unemployment Rate remained unchanged at 3.6% YoY. Average Hourly Earnings dipped to 4.2% YoY, below the 4.3% foresaw.
The EUR/GBP daily chart suggests the pair would end the week trading sideways, capped to the upside, by the confluence of the 20 and 50-day Exponential Moving Averages (EMAs) at 0.8791 and 0.8803, respectively. For a bullish resumption, the EUR/GBP must reclaim 0.8805, so the pair could test the March 30 high at 0.8828, followed by March 23 cycle high at 0.8865.
On the downside, the EUR/GBP price action is capped by the 100-day EMA at 0.8779. Once broken, the EUR/GBP could dip towards April 6 low at 0.8739, followed by the 200-day EMA at 0.8714, before dropping to 0.8700.
EUR/USD steadies near 1.0900 after US jobs report
EUR/USD has managed to return above 1.0900 after having dropped below that level with the initial reaction to the US jobs report, which showed that Nonfarm Payrolls rose by 236,000 in March. Thin trading conditions on Good Friday doesn’t allow the pair to gain directional momentum.
GBP/USD holds above 1.2400 following NFP-inspired decline
GBP/USD recovered modestly after falling below 1.2400 with the knee-jerk reaction to the mixed March jobs report from the US. US stock markets will remain closed on Good Friday and US bond markets will end the day early, possibly causing the market action to remain subdued.
Gold eyes increased volatility at the opening next week
Gold price settled above $2,000 but it could face increased volatility at the beginning of next week with investors assessing the March jobs report from the US. The Unemployment Rate dropped to 3.5% with a 236K increase in Nonfarm Payrolls but wage inflation continued to soften in the US.
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