Forex Market Fundamental Overview

US a ten- bond yield rises to 4.63 percent on strong economic data.
Overview: Citing hotter-than-projected economic figures. U.S. ten-year yield on bonds rose to 4.63 percent from 4.52 percent yesterday. 2-year Treasury rates rose to 4.98 percent .

The Philly Fed Manufacturers Survey rose to 15.5 to 3.2 earlier. Each week filings for jobless benefits in the United States declined to 212,000 above estimates of 215000. The DXY, jumped to 106.15 from 106.00, a five-month peak.

Forex Exchange Rates

The US dollar (USDJPY) forex rate surged to 154.68 mark vs the Japanese Yen, reaching peaks not achieved until the year 1990. During the initial tri-lateral conference, financial leaders from the United States, Japan, & the Republic of Korea resolved to work together on foreign currency exchanges. USDJPY finished at 154.65 mark.

The Fed’s members’ comments remained to highlight the economy’s resilience, stressing that the nation’s monetary authority is not in a hurry to lower rate of interest.

The Aussie (AUDUSD) dipped to 0.6420 mark form 0.6470 level following Australian’s main jobs declined 6,6K in March, below the expectation of +10.1K. The jobless rate fell to 3.7 percent from 3.8 percent.

The euro fell vs the US greenback to 1.0645 to 1.0665 mark yesterday. Soft statements by ECB members impacted on the common money. According to ECB’s Villeroy, the central bank will decrease rates this June, unless there is an enormous upset.

Pound (GBPUSD) fell to 1.2435 off 1.2455mark whilst the EUR (EURUSD) fell to 1.0645. Britain’s the ten-year Gilt Rate climbed to 4.27 percent, whilst German’s the ten-year Bund Yield increased to 4.27 percent from 4.14 percent earlier.

Upward American bond rates propelled the US currency up versus Asian & currency pairs from emerging markets.

Forex Pricing and Trading Analysis

USDJPY

The USDJPY exchange rate soared to new 1990 peaks of154.68 at night, Prompting Japan’s bank members to issue a statement. BoJ’s Ueda, straight from visiting the G20 Finance Ministries meeting in Washington, said the BoJ may hike rates again if the Japanese yen’s depreciation significantly boosts inflation. Following Ueda’s remarks, the USDJPY unit remained relatively stable around 154.60 level. After an increase in US treasury rates, the greenback stemmed its drop and rebounded versus the JPY. Watch for early barrier today around 154.70 then 155.00 mark to limit any gains that occur. Nearby protection exists at 154.20, 153.91, then 153.61. Watch bumpy activity in the USDJPY forex couple today. As BoJ policymakers keep a close eye on the US dollar’s exchange price. The probable limit is 153.50 to155.01. Better selling if the USDJPY gains now. Buying the US dollar versus yen wagers are extremely saturated.

AUDUSD & EURUSD

AUDUSD — The AUD fell to 0.6420 mark versus the generally higher US currency. A March drop in Australian jobs put pressure on the currency. Nearby protection lies between 0.6390 and 0.6361. To the upside, watch for immediate obstacles around 0.6450 (the nighttime top of 0.6457 mark). The following levels of resistance sit at 0.6480 then 0.6511 mark. Expect a tumultuous business morning, with prices ranging from 0.6380 to 0.6481 levels.

The EURUSD – The common currency fell more vs the U.S. dollar, reaching 1.0645. Expect rapid support at 1.0620, mark, and then 1.0590 & 1.0561. Nearby barrier is seen at 1.0690 mark. Expect the EUR to move between 1.0630 and 1.0730 this morning.

GBPUSD

The GBPUSD – The British pound slipped slightly versus the U.S. greenback to 1.2437 mark.  After the N.Y close up, down from 1.2455 level yesterday. Watch for rapid support for the UK pound at 1.2400 level, then at 1.2370 & 1.2341 mark. To the upside, immediate obstacle is around 1.2365 then 1.2385 (over-night top). The subsequent barrier lies at 1.2415 mark. Having pound reaching a five-month trough at 1.2400. Its propensity is to buy declines. Gross speculating bearish GBP wagers have additionally oversubscribed. The advice given is to purchase Sterling declines in the present-day probable value range of 1.2400 to1.2500 area.