Market waiting in anticipation of Non-Farm Payrolls US data. Yesterday's Chicago PMI was mundane at 46.3 versus an expected 51.8 and that put the USD into a holding pattern for today. With the holidays coming up on friday not too many traders like to take a position particularly as the currency markets have become increasingly more volatile in Q1 2015. Chicago PMI figure is amplifying USD strength concerns of hurt to the export sector. With the EUR all eyes will be on the ECB as Greece runs out of cash by April 9th. The chances of default are looming and a Grexit becoming an increasing probability. That would increase pressure and volatility on the uncertain EUR. The whole drama commences on April 9th where Greece is to pay EUR 460m to the IMF under terms of first bailout agreement. Then on April 13 EUR 1,400m of short-term Greek Treasury Bills will mature with a further 1000m maturing April 16th. the stage is set and the specs already looking beyond the horizon of the parity mark. But in spite of all this ECB President Mari Draghi remains upbeat according to Bloomberg -
Whatever the outcome as to whether the ECB will intervene one thing is certain; the currency markets are in for an explosive ride for April 2015 and traders will need to take care of potential whipsaw effects as daily trading ranges widen due to the uncertainty in the currency markets.
USDX
98.221 +0.100 +0.13%
Support 97.848 Resistance 99.288
EUR
1.077000 -0.000235 -0.02%
Support 1.06897 Resistance 1.08537
Crude Oil
49.43 -0.66 -1.39%
Support 45.80 Resistance 52.60
Gold
1203.635 +17.350 +1.46%
Support 1,170.9 Resistance 1,227.3
Pieter Bergli - DeLoren Trust Holdings
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