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GBPUSD Weekend Forex Commentary

USDJPY Weekend Forex Commentary

USDCAD Weekend Forex Commentary

An unexpected jump in auto sales helped boost Canada’s March retail sales to a 2.1 percent increase over the previous month. This is the largest single-month increase in five years, with eight of the eleven sectors included in the calculation recording a positive result.

Source: Reuters

Friday looks set to continue the trend for the entire week as stocks continued to fall in Europe and Asia ahead of the North American open. The MSCI World Index of developed-nation shares retreated 0.4 percent at 7:59 a.m. in New York, heading for an almost eight-month low. Futures on the S&P 500 expiring in June slid as much as 1.2 percent to 1,057.6, following a 3.9 percent plunge in the U.S. benchmark index yesterday, and Dow Jones Industrial Average futures retreated below 10,000. The euro rose 0.4 percent to $1.2540, after climbing to $1.2672. The 30-year Treasury yield dropped to as low as 4.05 percent.

“It’s a material risk that the problem is continuing to get bigger and to get worse,” Arnab Das, the head of global market research and strategy at Roubini Global Economics in London, said in an interview. “As these budget cuts come through, the economies are potentially going to go sharply downward. The general tendency is going to be downward” for the euro, he said.

Source: Bloomberg

EU finance ministers are gathering in Brussels today to discuss how to address the euro debt crisis. There will also no doubt be an attempt to present a united stand in the face of recent events hinting at a growing lack of unity within the community.

Source: BBC News

EUR/USD edged lower to 1.2143 last week but formed a short term bottom there and recovered. Further rise would probably be seen initially this week as correction continues to 38.2% retracement of 1.3691 to 1.2143 at 1.2734 and above. Nevertheless, upside should be limited below 1.3093 cluster resistance (61.8% retracement at 1.3100) and bring fall resumption. On the downside, below 1.2295 minor support will flip intraday bias back to the downside. Further break of 1.2143 will target 1.20 psychological level next.

USD/JPY dropped sharply to as low as 88.97 last week before turning sideway. With 90.92 minor resistance intact, initial bias remains on the downside for 88.13/25 key support zone first. On the upside, above 90.92 minor resistance will argue that fall from 93.62 is completed and will flip intraday bias back to the upside for this resistance.