USD INDEX” Bearish Despite Recovery Attempts!
As long as 89.00 support holds on a weekly closing basis, the USD Index remains in a recovery mode and further upside could be seen, but upside above 89.00 should be contained well by the 90.30/90.95 levels, above 90.95 on a weekly closing basis will extend recovery to the 92.38/93.17 levels, further upside, resistance comes at the 95.00 levels.
On the downside, support comes at the 89.00 levels, a cut through this level will add more pressure on the 87.78 levels, further down, support comes at the 86.82 levels ahead of the 85.00 levels.
Conclusion: The USD Index sees downside threats below the 90.95 levels.
1. Situations in Syria
The United States, Britain, and France bombed Syria in a coordinated air strike on Friday night, in what was called the biggest intervention in the Syrian civil war by Western powers since the conflict began in 2011.
Market sentiment may be affected this week if the war of words escalates between Washington and Moscow.
2. U.K Employment Report
The U.K will report on Average Earnings Index +Bonus (Feb) and Claimant Count Change (Mar) on Tuesday at 8:30 GMT. Average Earnings Index +Bonus is expected to rise 3.0%, from 2.8% a month earlier. Claimant Count Change is also expected to jump to 13.3K, from 9.2K in the preceding month.
The U.K data may bring a buying opportunity for GBPUSD.
3. U.K CPI Figures
The UK Office for National Statistics will release data on consumer price inflation for March on Wednesday at 08:30 GMT.
Analysts expect annual CPI to hold steady at 2.7%, while core CPI is expected to rise slightly, from 2.4% to 2.5%.
4. Bank of Canada Interest Rate Decision
The BoC will announce its benchmark interest rate and publish a rate statement on Wednesday at 14:00 GMT.The central bank is expected to leave the rate unchanged at 1.25%. (USDCAD sees a selling opportunity).
5. U.K Retail Sales
The U.K will report on Retail Sales for March on Thursday at 08:30 GMT. Analysts expect Retail Sales to fall -0.5%, from 0.8% a month earlier.
You can follow the rest of the week’s economic events by visiting: