EURUSD remained to some extent depressed at the beginning of this month, modestly in the range of 1.1150 levels. Traders were pleased that the pair had gained more confident positions around the 1.1200 mark. Nevertheless, it remains quite vulnerable against the background of ongoing trade disputes between the US and China, as well as ambiguous data from the European economy.
The pair started today's trading session at 1.1194 levels. Then the euro passed slightly, which caused a slight downward effect after the publication of the consumer price index in China. The release figures for the consumer price index (CPI) in April were in line with market expectations. After this event, EURUSD fell to the level of 1,1186, but later recovered in April data on the PPI index.
Meanwhile, the market focuses on the growing trade disputes between the United States and China. Nevertheless, investors are positive on the background of the resumption of negotiations between the countries. Chinese officials are planning a visit to Washington to continue talks with their US counterparts. Rumors of their canceling were premature, which also adds confidence to investors.
The US currency index remains at a fairly good level at 97.50, although this does not reduce its sensitivity to any changes in the trade negotiations between Beijing and Washington.
A data on industrial production in Spain for March showed a very strong negative value of 3.1% compared with negative forecasts of 1.3%, which may later add pressure to the euro. However, at the moment, traders are showing great interest in the upcoming release on the US trade balance.
The EURUSD pair, at the moment, is trading down at the mark of 1, 1178. Trading recommendations for this pair: Buy. Entry point - 1, 1188. Take Profit - 1, 1204. Stop Loss - 1, 1160.
A light appears at the end of the tunnel at the Brexit front. British Prime Minister Theresa May may for the fourth time try to break the current political deadlock. The latest news from London suggests that the Prime Minister will make the maximum possible effort to finally resolve the Brexit issue before the European Parliament elections scheduled for the end of this month. This gave confidence to the British pound.
Forex trading recommendations:
GBPUSD: Buy. Entry point – 1, 3007. Take Profit – 1, 3035. Stop Loss – 1, 2959.
AUDUSD: Buy. Entry point – 0, 6970. Take Profit – 0, 6985. Stop Loss – 0, 6944.
USDCAD: Buy. Entry point – 1, 3490. Take Profit – 1, 3509. Stop Loss – 1, 3458.
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