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(Z1) Off Lows, But Remains Weak


Still Vulnerable


Bullish Price Sequence

FOREX: Friday saw the Greenback rise for the 8th session in 9, with the DXY
managing to post fresh 3-month highs, while sterling struggled in the wake of a
soft Q1 GDP estimate. The DXY's strength was capped by the 200-DMA (91.991),
which saw the USD reverse of most of the day's gains.
- Sterling was, by a distance, the poorest performer as as chances of a May rate
hike dwindled materially after GDP growth fell well below forecast. As MNI's
Data team highlighted, the economic weakness happened alongside, and not because
of, the poor weather conditions. The moderation of USD strength took some of the
downside pressure off energy & metals prices. As a result, CAD, AUD & NZD rose
modestly against most others. After a week of weakness, the JPY strengthened
slightly as recent US equity strength abated on Friday.
- Risk events this week include the FOMC MonPol decision & the subsequent
Fedspeak, US NFPs, EZ GDP & CPI, China, US, UK & EZ PMIs, RBA MonPol decision &
SoMP, Norges Bank MonPol decision & Canadian GDP. Holidays across China & Japan
will likely limit volume this week. China & Japan are closed on Monday, with
China also closed on Tuesday, while Japan will be closed on Thursday & Friday.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |