Major Currency Pairs Consolidate Ahead of US Employment Data


In the middle of the current five-day period, the upward movement in the American currency slowed down slightly. Thus, buyers of the pound/US dollar currency pair found support just above 1.2500 and strengthened by more than 100 points. The euro/US dollar pair is trading above 1.0800, and greenback buyers in the US dollar/yen pair failed another attempt to test 152.00.


The eurozone consumer price index for March published yesterday was lower than expected: 2.4% versus 2.5%. A slowdown in inflation is also observed in Germany: 0.4% versus 0.5%. Such indicators supported the single European currency and contributed to the rebound from 1.0700. Technical analysis of EUR/USD indicates the development of a piercing candle combination on the daily timeframe. If the price consolidates above 1.0900, a test of the psychological level of 1.1000 is possible.

From the point of view of fundamental analysis, today at 11:00 GMT+3, it is worth paying attention to the publication of data on the composite index of business activity in the eurozone for March. A similar indicator will also be published in the services sector.


Weak data on the purchasing managers' index for the US non-manufacturing sector from the ISM, published yesterday, interrupted the pair's growth on the usd/jpy chart near 152.00. However, significant losses and the formation of reversal combinations on higher time frames have not yet been observed.

Important for the pair's pricing will be employment data in the US, the publication of which is scheduled for tomorrow at 15:30 GMT+3.


We are also seeing the development of a reversal combination to buy a piercing candle in the pound/US dollar pair. At the beginning of the week, the pair was trading near 1.2500, but yesterday it returned above 1.2600.

An increase in the number of approved mortgage loans in the UK in February and a higher-than-expected increase in the manufacturing business activity index in March provided undoubted support for the British currency. The price on the GBP/USD chart retested 1.2540, and, having rebounded sharply, managed to strengthen by more than 100 points. If the existing upward potential for the pair continues, the price may retest 1.2800-1.2770.

Today at 11:30 GMT+3, it is worth paying attention to the publication of data on the business activity index in the UK services sector for March.

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