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Tuesday, February 28th
The EUR/USD was unable to hold its recovered positions, falling back to 1.0590 area, ahead of US president’s address to the Congress. Yesterday the dollar staged a solid comeback following D.Trump’s comments regarding his upcoming speech. The US president stressed that key topics that will be discussed at today’s address to the Congress will be fiscal spending plans. According to his comments the US will significantly increase defense spending (+10%). Moreover, D.Trump also said that he will make an important announcement on infrastructure during his today’s speech. Additionally, the latest opinion polls are showing that E.Macron is taking a lead in French election race, outperforming far-right M.Le Pen, thereby offering some support to EUR bulls. Today all eyes will be focused on US president’s speech and US macro data, while EU docket will keep silence during this Tuesday.
The Kiwi extends its pullback against its American competitor for the third session in a row, suffering from bearish NZ fundamentals. By the time of writing the pair was trading within striking distance of its overnight lows, posted at 0.7177 handle, as NZ Trade Balance data showed solid deficit in January. Moreover, broad demand for the greenback, boosted by D.Trump’s comments on budget plans, is also collaborating to pair’s downside traction. Today US price dynamics will remain as a key driver for the pair until NA session, during which US will release flash GDP and CB Consumer Confidence, while US president will present his speech before the Congress.
The Looney fails in attempts to recover after yesterday’s sharp rally against its American neighbor, leaving the USD/CAD pair in the region of 1.3180. Yesterday the greenback caught strong bullish momentum despite disappointing US data, after D.Trump had delivered some clues on what will be discussed during his address to the Congress. However, better tone around crude oil prices is supporting Canadian dollar, but seems that it is not enough for CAD bulls to take control over the pair. Today investors will stay focused on D.Trump’s speech, that will determine pair’s next leg of directional move, while US macro data will also be closely watched, although its’ impact will be limited.
The GBP/USD pair is remaining better offered in European opening, following global market sentiments this Tuesday. Yesterday the dollar reversed sharply across the marker, following Trump’s comments on fiscal spending plans. Moreover, prospects of Scottish independence referendum are also weighing the pair, limiting its attempts to recover. Today traders will eagerly await for US president’s Congressional address, that is scheduled on NY evening, while US economic reports will also have some impact on the pair.
The main events of the day:
US prelim. GDP – 15.30 (GMT +2)
US CB Consumer Confidence – 17.00 (GMT +2)
US President D.Trump’s Speech – 23.00 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0510 R. 1.0668
USDJPY S. 111.55 R. 113.41
GBPUSD S. 1.2338 R. 1.2530
USDCHF S. 1.0025 R. 1.0129
AUDUSD S. 0.7636 R. 0.7726
NZDUSD S. 0.7160 R. 0.7242
USDCAD S. 1.3050 R. 1.3244
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