Friday’s trading was dominated by US dollar, as rose to fresh highs. The DXY index gained 0.63% while trade within 101 range for most of day before closing at its highest level since 2020.
The European Central Bank President, Christine Lagarde has said that they may end their purchase programme in early Q3 and predict interest rates will rise by 2022.
The EUR/USD exchange rate dipped below the critical support area around 1.0760, but it remains supported by this level until further notice because of its wide range bound movement so far.
Any test at that level could open the door for a test at 1.0635. Support which is holding the position from March 2020.
GBP/USD: The British pound has been on a roller coaster ride these last few days. After plummetting below 1.3000 for the first time in 18 months, it reached new lows of around 1.2800.
The GBP/USD fell on Friday as investors worried about the UK economy. The Gfk consumer sentiment hit its worst level since 2008.
The UK’s Retail Sales were weaker than expected, and the Services & Composite PMIs for April beat expectations but still lags.
In a recent speech, British Bank of England Governor Andrew Bailey said that inflation would go higher in the UK as prices for energy goods and services continue their climb.
The AUD/USD extends Thursday’s losses and adds negative-130-pips as market the feeling of the market go down. The currency has fallen against the US dollar, losing more ground after recent comments from Federal Reserve.
The AUD/USD has been steadily declining for the last few days and it’s currently 20-pips below its 100 day moving average (DMA). This could mean that there are some negative trends developing in this market if certain conditions stay met.
The USD/CAD currency pair shot up roughly 140 pips on Friday to hit its highest level in more than one month, finally closing above the 1.2700. Despite a minorly bearish combination of better than expected Canadian Retail Sales data and worse US flash PMI numbers, the pair’s rally continues.
