USD kept falling, Pound raising!
After President Biden commented about global vaccination and confirmed that the U.S. would supply more vaccines to other countries (including Pfizer and Moderna) all around the globe, USD got under pressure because this move will help boost market confidence in the recovery of the global economy and at the same time ease the demand for U.S. dollars safe-haven.
On the other hand, market sentiment gets more positive as global recovery seem going well forward, while FED supports getting more attention than global worries about Virus and Inflation concerns. In the last few days, FED speakers are still committed to their comments and ideas that higher inflation is transitory, and FED does not need to react or change the policy. And it was one of the main reasons why stock markets gained most of their yesterday`s loss.
USD Index technically moves in a clear downtrend. Earlier, the index has been breached the lower line of its latest created range and now looking forward to January low at 89.20. price moves under the chart trend line as well as the OBV trend line. RSI at 33 also supports the Trend, signaling that the Trend has enough strength to keep its way.
EURUSD: The euro continued its gains against the U.S. dollar, closing at 1.2150. After expected GDP data from Europe, and while DXY was getting weaker in the earlier European season, the pairing has breathed above 1.2200 level, toward 1.22, the highest since February. RSI at 80 moves at O.B. area; however, since the price move clearly above main M.A. lines, the uptrend still is confirmed. European countries started easing restrictions which is a positive signal for EUR as well.
GBPUSD: Overnight, BoE Frieger said that negative interest rates would be added to the toolbox from August. After this comment, the pound continued to gain momentum against the U.S. dollar and closed up 0.38% at 1.4129. Earlier today, also after U.K. positive employment data, GBP got more support. The unemployment rate fell to 4.8% in March, less than 4.9% expected and last month`s rate. Jobless claims also surprisingly fell by 15,100 in April. Cable is rising above 1.42, and technical indicators also support the uptrend in both short and mid-term charts.
