|Day's Range||1.116 - 1.116|
|52 Week Range||1.1122 - 1.2149|
S&P Global Ratings said on Friday it had affirmed Italy's BBB credit rating, two notches above junk, while holding a negative outlook on the country. The agency said it would consider lowering Italy's rating within 24 months if it didn't rein in its debt to GDP ratio, or if the agency "observe a marked deterioration in external financial conditions for Italy's government and its banks." Italy has the second highest debt to GDP of the 28 EU Member nations at 132.2%, according to Eurostat. Italy's fiscal concerns have weighed on the euro, which hit a 23-month low on Thursday at $1.1112. On Friday, the shared currency was trading at $1.1151, slightly higher on the day.
An index that tracks the U.S. dollar turned lower on Friday, even after gross domestic product data showed the U.S. economy grew at an annualized rate of 3.2%, much faster than expected.
The Aussie Q1 Producer Price Index & Export Price Index reported lower than the market expectation. The Japanese March YoY Housing Starts Data was 4.2% above estimates.
The Euro broke down during the course of the week, slicing through the 1.12 level, an area that has been massive support over the last several months. By breaking through there, it’s a very negative turn of events but we also have an area that extends lower for support.
The Euro initially fell during the trading session on Friday but turned around to form a bit of a hammer. We are starting to hammer the market right around the 1.1150 level, so if we do bounce from here then we need to test the previous support level.
Investing.com – The U.S. dollar fell against its rivals Friday as traders bet the Federal Reserve will cut rates after better-than-expected U.S. first-quarter growth data was offset by slowing inflation.
Based on the early price action, the key support zone is the formed by the June 20, 2017 main bottom at 1.1118 and the May 30, 2017 main bottom at 1.1109. Today’s intraday low fell between these two levels at 1.1112. If the upside momentum continues then look for a rally into a downtrending Gann angle at 1.1178. Look for sellers on the first test. The EUR/USD is in a position to post a potentially bullish closing price reversal bottom.
The bears continue to bring down the Euro pair. Also, the ECB remains neutral/bearish over the economic outlook of the region. The 200-days major SMA hovered well above the pair alluding a downtrend.
Corporate earnings and U.S GDP numbers will keep the markets busy later today. Risk appetite could be tested if the U.S economy sees sub-2% growth…
Market jitters could return if the U.S economy sees growth slow to below 2%. Ahead of the stats, European corporate earnings will be in focus.
Investing.com -- The dollar was consolidating near its highs for 2019 in early trading on Friday, showing little sign of weakening after a week of data and central bank actions that have underlined the relative strength of the U.S. economy, at least for the present.
The collapse of the Swedish krona to its lowest level in more than a decade against the dollar on Thursday was fueled by what’s becoming a common theme in financial markets: a retreat by global central banks.
The U.S. dollar opened higher on Thursday, with a popular gauge of its strength rising to its highest level since May 2017.
The EUR/USD continued to stay intact near its lowest vicinity while the greenback stood at its mirrored position. The safe-haven pair fell flat on the face after BoJ monetary statements. The Pound pair slumped and soared back to the same opening position of the day.
The Euro initially tried to rally a bit during the trading session on Thursday but gave back the gains and then broke down even further. At this point, the Euro looks as if it is in real trouble.
Based on the early price action and the current price at 1.1148, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to 1.1152.
Investing.com – The dollar was flat against a basket of major currencies as mixed U.S. economic data weighed on sentiment ahead of crucial U.S. GDP data due Friday.
Mounting fiscal worries about Italy, Europe’s fourth-largest economy, could heap further pressure on the euro in the near term.
This week brought us crucial movements for the American Dollar. USD made new local highs/lows on many instruments with the Dollar Index and the EURUSD as the best examples.
The Euro pair got hammered a couple of times in the last few sessions. The bears may remain under control for quite some time. The Euro Bulls, however, await the US Q1’19 GDP scheduled to report on Friday.
The Bank of Japan downwardly revises growth and inflation forecasts. The focus will now shift to the ECB Economic Bulletin and corporate earnings.
Futures are pointing to another mixed start to the day for the majors. The DAX is in search of a 10th consecutive day in the green…