6 Apr 2015
Extreme thin FX volumes expected until US hours
FXStreet (Bali) - Valeria Bednarik, Chief Analyst at FXStreet, notes that with Easter holiday extending into Monday - only Japan opens during Asia - and with most markets closed in Europe, extreme thin volumes should be expected until US hours.
Key Quotes
"It won't be until Tuesday's Asian opening that the markets will resume their full activity, after the US employment data. The report was the worst one in over a year, with the US economy adding just 126K new jobs in March, and with strong downward revisions to the two previous months. The unemployment rate remained steady at 5.5%, whilst wages ticked higher, with average hourly earnings up by 0.3% monthly basis, but it was not enough to overshadow the terrible headline that clearly signals a slowdown in the US recovery's momentum during the Q1, particularly considering data has been weak, to say the least, all through March. The dollar was sold off after the headline, with an early week close on Friday leaving the EUR/USD pair hovering around the 1.1000 figure."
"Technically, the EUR/USD was unable to reach the 1.1050 price zone, level that has contained the upside for the last three weeks, although the close around the critical figure suggests the downward move in the dollar will extend over the upcoming sessions. The 4 hours chart shows that the price stands around the 50% retracement of the February/March decline, whilst the 20 SMA heads higher below the current price and the technical indicators maintain a strong upward momentum supporting some additional gains, as long as buyers surge around the 1.0960 price zone, a strong static support level."
Key Quotes
"It won't be until Tuesday's Asian opening that the markets will resume their full activity, after the US employment data. The report was the worst one in over a year, with the US economy adding just 126K new jobs in March, and with strong downward revisions to the two previous months. The unemployment rate remained steady at 5.5%, whilst wages ticked higher, with average hourly earnings up by 0.3% monthly basis, but it was not enough to overshadow the terrible headline that clearly signals a slowdown in the US recovery's momentum during the Q1, particularly considering data has been weak, to say the least, all through March. The dollar was sold off after the headline, with an early week close on Friday leaving the EUR/USD pair hovering around the 1.1000 figure."
"Technically, the EUR/USD was unable to reach the 1.1050 price zone, level that has contained the upside for the last three weeks, although the close around the critical figure suggests the downward move in the dollar will extend over the upcoming sessions. The 4 hours chart shows that the price stands around the 50% retracement of the February/March decline, whilst the 20 SMA heads higher below the current price and the technical indicators maintain a strong upward momentum supporting some additional gains, as long as buyers surge around the 1.0960 price zone, a strong static support level."