Huge downside pressure was seen on high yielders through the trading session on renewed fears triggered by abating expectations the FED will inject more cheap money into the system. Pressure was intensified by the downbeat auctions seen from Spain and France Wednesday and Thursday, where we have seen yields rise threatining the recent tentative stabilization in money markets.
The dollar index soared extending yesterday's gains. The index breached 79.95 resistance level to currently trade around 80.05 on the way towards the major and recent high at 80.72. Stability above 79.95 now shall confirm further upside potential towards the aforementioned swing high.
The Euro looks forceless; dropping more than 300 pips in two days against the greenback. The pair has breached the horizontal support at 1.3120 and the main ascending trend line that carried the recent bullish trend. Thus downside pressure is expected to continue towards the main cluster of support level among 1.3000-1.2970, while pullbacks should be capped below 1.3120 for now, followed by 1.3165.
The EUR/CHF dipped briefly below the SNB'S floor at 1.2000 before rebounding to trade above again on unofficial talks among FOREX traders that the SNB seen buying the currency to protect the pledged floor.
The bank of England held interest rate steady at 0.5%, with no further easing for now; holding onto its asset purchase facility at 325 billion as economy has showed signs of going back to growth.
The GBP/USD pair is trading near pre-release levels, however the pair continues to lose grounds against the U.S. dollar on poor market sentiment. Price is currently testing the 50-days Simple moving average around 1.5820-1.5815 level, further downside is seen if this level was taken; eying the major short term support at 1.5770 followed by the floor of the main range-bound at 1.5600. To the upside pullback shall face strong resistance by 1.5850 and 1.5900 levels.
The USD/JPY is gaining on haven demand; the pair could be forming a descending triangle pattern; with the main support of the pattern around 81.75 level, thus of we witness a breach below 81.75 the door shall be open towards 80.55. In general, 83.20 is the main barrier towards further gains within the upcoming period.
USD/CAD fell sharply flowing the strong macroeconomics from Canada today; building permits soared to 7.5% expansion from 11.4% contraction last month, which is a huge incline. On the employment front, the economy added 82,300 jobs in March; way above market expectations of 11,300 thus pushing unemployment rate 0.2% lower to 7.2% from 7.4% while market expected the rate to jump to 7.5%. The pair is pushing to the downside trading back below 0.9950, we may see a push even lower however under the current market conditions the upside is favored over the short term thus we expect the pair to reverse higher from lower levels.