Market Roundup
- Japan Feb leading indicator index -0.2 points from Jan.
- Japan Feb coincident indicator index -2.8 points from Jan.
- Spain March jobless falls 1.33 pct m/m, by 60,214 people, hits 4.45 mln people.
- Indonesia central bank says February money supply (M2) growth 16.1 pct y/y, vs 14.3 pct in January.
Economic Data Ahead
- (0945 EDT/1345 GMT) US Markit Services PMI, previous 58.6
- (0945 EDT/1345 GMT) US Markit Composite PMI, previous 58.5
- (1000 EDT/1400 GMT) US ISM Non-Manufacturing PMI, previous 56.9, consensus 56.5
Key Events Ahead
- (0830 EDT/1230 GMT) Fed's William Dudley speech
FX Recap
The yield on benchmark 10-year Treasury notes, which moves inversely to prices, hit nearly two-month lows of 1.8 percent on Friday, and stood at 1.829 percent in Asian trading, keeping pressure on the greenback.
EUR/USD pared partial gains in a whippy trend in Europe as it continues see-sawing in a thin 30 pips range. It currently trades at 1.0979 levels, having hit today's high at 1.1016 levels and low at 1.0964 levels. It sees major resistance at 1.10 levels, and a break above could push it to 1.1028 levels. On the downside, support is likely to be found at 1.0966 levels and below that at 1.0900 levels.
GBP/USD continued its uptrend and hit 1.4942 levels (today's high). However, the gains appear to be limited by major resistance at 1.4950 levels. It is likely to see some major action this week as Services PMI is to be released tomorrow, followed by Industrial and Manufacturing figures. Moreover, trade balance and Bank of England MPC meeting are also scheduled this week. The pair's immediate resistance is seen at 1.5000 levels and then at 1.5027 levels. On the downside, support is located at 1.4851 levels and a break below could extend its losses to 1.4796 levels.
USD/CAD has taken support around 1.2450 levels and recovered slightly from that level, halting its downtrend seen over the past few sessions. On the upside, minor resistance is around 1.2540 levels and any break above could pave way for next target 1.2620 levels. On the flipside, any break below 1.2450 will drag the pair further down to 1.2408 levels.
USD/JPY slightly recovered on Monday following a plunge below 119 mark on Friday as weaker than expected US payrolls figures dragged the pair to fresh one-week lows. It currently trades at 119.10 levels, having posted day's high at 119.15 levels and low at 118.78 levels. The pair's near-term resistance is seen at 119.21 levels and above which gains could be extended to 119.42 levels. On the other hand, immediate support is seen at 119 and then at 118.69 levels.
USD/CHF remained largely muted on Monday as major European markets closed for extended Easter holiday. It traded in a narrow 30 pips range and currently trades at 0.9512 levels. On the topside, it is expected to face resistance at 0.9540 levels and a break above could push the pair to 0.9650 levels. On the downside, support is seen at 0.9480 levels and a break below could extend its losses to 0.9370 levels.
