EUR/USD
The day for the euro was defined by a range-bound movement. At the beginning of the European session, we monitored a slight gain towards 1.0565 in favour of the bulls, but the German CPI data, which came out at 12:00 GMT, erased these gains and the pair hit the daily bottom at around 1.0480. Germany’s GDP data release is expected today at 07:00 GMT, and Iif the growth forecast exceeds the markets’ expectations, then we could once more see prices in the single European currency rising towards 1.0653. However, if the data fails to live up to the current expectations, then the probability of a move below the current bottom at 1.0480 will increase.
USD/JPY
The day started with a strong movement for the dollar against the yen, resulting in a breach of the previous resistance at 130.25. Following this breach, at noon the pair slowed its growth and ended the day with a new daily and weekly high of 131.23. The bulls’ attack came after the announced unchanged policy of the BOJ yesterday, which led to a serious decline in the yen. On Friday, the Japanese celebrate the birth of Emperor Showa and it is an official non-working day, which may further weaken the yen due to the lack of Japanese banks in the market. A rise above 131.23 is more likely, with expectations of reaching 133.00, but it is possible that the momentum will slow down and the pair might enter a range between 130.25 and 131.25.
GBP/USD
The sterling started to rise at the beginning of the session to its daily peak of 1.2570, but then turned around and continued its downward trend by hitting a new daily and weekly bottom of 1.2410 – values that we have not seen since the fall of 2020. The lack of macroeconomic data, together with the actions taken by the British government to support Ukraine, both create the perfect storm for the pound’s decline. There is not data economic data scheduled for today which could fuel a move up, which means that a deepening below 1.2410 is more likely, with a possible new bottom around the weekly support of 1.2300. However, scenarios for the trend’s slowdown should not be ruled out against the background of a 600-pip weekly decline.
EUGERMAY40
As early as the opening of the European session, the German index began with a 200-euro rise, which was rejected at noon. The session continued with a slight downward correction and a consecutive rebound towards the daily high of 14120. At the end, however, along with the decline in the U.S. stock market, the EUGERMANY40 weakened and ended at around 14040. Today the upcoming GDP data report from Germany is expected to affect the price of the index. If the data is positive, then we could see a stimulus for an increase above 14120 and for a return towards 14295, but if traders are disappointed, then the downward trend may continue and once more reach 13559.
US30
During the European session, the blue chip index managed to gain 300 points, but shortly before the US opening, the correction deepened to 33,230. With the start of Wall Street, however, growth was significant and we saw a daily peak of about 34,100.There was a small correction at the close to around 33850. On Friday, macroeconomic data about U.S. spending will be announced at 12:30 p.m. GMT and is expected to have its impact, according to the data. If the US30 resumes its upward movement, it will only happen after a convincing break and confirmation of 34100, after which it may reach 34780 again. However, the option to continue to range between 33400 and 34100 should not be ruled out.
