EURUSD: U.S. Labor Market Data Released
Investors are showing lower activity because of the Easter holiday and the EURUSD is holding steady at 1.0898.
The U.S. dollar is traded up, but a mixed macroeconomic backdrop has limited the potential, as the pair is testing the 101.800 level of the USD Index. Thus, the economically active part of the population went up from 62.5% to 62.6%, while the unemployment rate went up from 3.6% to 3.5%. Recall that this value for April 2020 as the Covid-19 coronavirus pandemic put pressure on the economy rose to 14.8% from 4.4% in March, showing a peak1940, but in May the index moved to an active decline. Meanwhile, the nonfarm payrolls sector continues to signal a slowdown, as the March value updated to 236.0k from February's 326.0k, and the private nonfarm payroll value increased by 189.0k, down from the previous 266.0k.
- Resistance levels: 1.0950, 1.1150.
- Support levels: 1.0840, 1.0630.
GBPUSD: EU and UK tourism sector under pressure
GBPUSD is showing multidirectional dynamics, aiming to test the level of 1.2400. The pound has been dominated by downward sentiment since Wednesday of the previous week, when the asset retreated from its record high for June. "The American" continues to remain under moderate pressure.
According to a report of the British edition The Guardian, after a detailed analysis of the data analysts noted a rapid decline in tourist traffic on the background of the country's withdrawal from the European alliance, because those wishing to visit the Kingdom requires the appropriate package of documents, while previously only an identity card was required. Thus, in January and February 2019, the number of passenger traffic carried by the service Le Shuttle reached 314.0 thousand, compared to the same period in 2023, only slightly exceeding 251.0 thousand. At the same time, bookings from tourists from Germany and France, according to statistics from Experience Oxfordshire, collapsed by 100.0% to the figure before the pandemic. Analysts say the United Kingdom left the top 10 countries popular with tourists from France and Germany.
- Resistance levels: 1.2450, 1.2500, 1.2550 and 1.2600.
- Support levels: 1.2400, 1.2350, 1.2283, 1.2236.
USDCAD: the pair is testing the area at 1.3500
During the Asian trading session, USDCAD is demonstrating sideways momentum, trying to hold above the psychological threshold of 1.3500.
The day before the Canadian reports came out with optimistic statistics, as the unemployment rate remained unchanged at 5.0% against the experts' expectations of correction to 5.1%, while the number of working population increased by 34.7 thousand, The average hourly earnings rate declined to 5.2% from 5.4%, and business activity from Ivey rose to 58.2 points from 51.6 points, beating experts' expectations of 56.1 points.
- Resistance levels: 1.3550, 1.3600, 1.3650, 1.3700.
- Support levels: 1.3500, 1.3450, 1.3400, 1.3350.
USDJPY: the IMF has estimated the prospects of the Japanese economy in the current year
The currency pair USDJPY is developing a moderate strengthening, having gained correction momentum from the previous week. The trading asset reached 132.70, continuing gains due to technical factors and also due to March reports from the U.S. labor market at the end of last week.
Meanwhile, the International Monetary Fund expects a positive 1.3% economic growth in Japan in 2023 due to higher consumer activity and ample financial savings by the public since the pandemic, contrary to high consumer inflation. Meanwhile, economists attribute the rapid growth of the consumer inflation index to external causes, such as the effects of the pandemic, the cost of commodities and Russia's war against Ukraine.
- Resistance levels: 133.00, 133.74, 134.54, 135.57.
- Support levels: 132.00, 131.00, 130.00, 129.62.