FX MARKET REPORT 31.03.2021
The GBP/USD pair is trimming losses to head towards 1.3750 on the back of the comments. GBP/EUR remains at the low end of the key 1.17 level, trading above the 11-month high reached two weeks ago. The EUR/USD pair prolonged its recent bearish trajectory and dropped to a near five-month low, around the 1.1700 level. Relative Strength Index (14) has moved on the verge of breaking into oversold territory and warrants some caution for aggressive bearish traders. This makes it prudent to wait for some near-term consolidation or a modest bounce before positioning for any further depreciating move. The path of least resistance for the pair remains to the downside. Hence, any meaningful bounce might still be seen as a selling opportunity and remain capped near the mentioned confluence support breakpoint, around the 1.1760 zone. Some follow-through selling below the 1.1700 mark now seems to accelerate the fall further towards the 61.8% Fibonacci retracement level, around the 1.1620-15 region. This is closely followed by the 1.1600 mark, which if broken should pave the way for the continuation of the ongoing bearish trend. The dollar was up on Wednesday morning in Asia, rising to a fresh one-year high against the yen over investor bets that fiscal stimulus and an aggressive vaccine rollout will help the U.S. lead a global economic recovery from COVID-19. The dollar index inched up 0.08% to 93.370. The index held above the 93 mark and was on course for its best month since 2016. The USD/JPY pair was up 0.25% to 110.62, surpassing the 110 mark. The AUD/USD pair edged up 0.17% to 0.7607 and the NZD/USD pair inched up 0.07% to 0.6985. The USD/CNY pair inched down 0.07% to 6.5669 with the yuan offshore market the weakest since November 2020. Rising U.S. bond yields also gave the greenback a boost, with the yield on the benchmark 10-year Treasury note touching a one-year high of 1.776% on Tuesday.
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The GBP/USD pair is trimming losses to head towards 1.3750 on the back of the comments. GBP/EUR remains at the low end of the key 1.17 level, trading above the 11-month high reached two weeks ago. The EUR/USD pair prolonged its recent bearish trajectory and dropped to a near five-month low, around the 1.1700 level.…