As expected, this morning’s fundamental releases have the US Dollar in a blunder. More unemployment claims were filed last month than expected which caused the Dollar to quickly shift from being bullish for the day to bearish.
As a result, many of the majors such as GBPUSD are pushing higher and are ready to resume the uptrend established in 2020. A minor currency pair that should be getting more attention is EURNZD. This pair has been on a strong downtrend since October of last year. This morning the price was able to close bearish below a key daily level, which should make way for a next move down.
Today Jerome Powell is set to address the nation regarding the current US economy and monetary policy. There is a belief that Powell may ease quantitative easing as the Covid-19 vaccine becomes readily available. This move may provide significant confidence to investors and traders as it projects a possible recovery of the US Dollar.
Tomorrow we have the all-important core retail sales release for the United States. The current forecast is a result of -0.1% in comparison to the previous result of -0.9%. If the actual result is equal to or better than the forecast, Dollar bullishness will be observed in the markets.
Directory:
- Sign up for a Free Membership.
- Login to watch full recorded webinars in our Forex Trading Room.
- Chat with our traders in the Community Discord Server.
- Read yesterday’s breakdown: USDCHF and USDJPY Profits + Dollar At Crossroads
