US JOLTS comes in below expectations while Factory Orders rise 0.9% versus the expected 0.8%.The FOMC meeting kicks off, with a 25 basis points rate hike already priced in.
EUR/USD turns flat for the day amid a weaker US Dollar. The EUR/USD erased losses after the release of US economic data, rising from its weekly lows to levels above 1.0970. The pair is now flat for the day, ending a three-day negative streak, ahead of crucial central bank meetings.
Mixed US data after EZ inflation, ahead of FOMC.The final reading of US Factory Orders showed a rise of 0.9% in March, slightly above the market consensus of 0.8%. The JOLTS report showed that “the number of job openings decreased to 9.6 million on the last business day of March,” softer than the expected 9.7 million.
The US Dollar lost momentum after the reports, and EUR/USD rebounded rising more than 25 pips. The US Dollar Index is up for the day, trading at 102.25. US yields have plunged to new lows, with the US 10-year yields falling to 3.47% and the 2-year to 4.04%.
Attention now turns to the central banks. The FOMC will announce its decision on Wednesday, with a 25 basis point rate hike already priced in, while the European Central Bank (ECB) will have its meeting on Thursday. Prior to the FOMC, ADP will release its employment report on Wednesday.
The EUR/USD pair currently holds a bearish bias in the short term and is challenging an important support level around 1.0950. It bottomed on Tuesday at 1.0941, the lowest level since April 21, but has since bounced back toward 1.0980.
If the Euro recovers levels above 1.0970, it could change the intraday bias to positive; resistance levels above are located at 1.0990 and 1.1005. Under 1.0950, further weakness seems likely, with the next crucial support level at 1.0930.
EUR/USD rebounds toward 1.1000 as USD loses traction
EUR/USD has regained its traction and climbed toward 1.1000 after having declined below 1.0950 earlier in the day. The sharp decline seen in the US Treasury bond yields on resurfacing bank woes weighs on the US Dollar in the American session, helping the pair stage a rebound.
GBP/USD pulls away from daily lows, stays below 1.2500
GBP/USD has managed to erase a portion of its daily losses in the second half of the day on Tuesday but lost its recovery momentum before testing 1.2500. The risk-averse market environment doesn’t allow the pair to extend its rebound despite the modest USD weakness.
Gold extends rally to fresh multi-week highs near $2,020
Gold price has gathered bullish momentum and climbed to its highest level since mid-April near $2,020. The benchmark 10-year US Treasury bond yield is down nearly 4% on the day below 3.5% amid a selloff in regional bank stocks, fueling XAU/USD’s rally.
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