Forex Major Currencies Outlook (April 21, 2014)

Most markets are still closed today so expect further consolidation from major currency pairs. There are no economic reports due from the US but traders are watching bond yields very closely to figure out the long-term direction for the Greenback. Risk sentiment could also play a key role in determining price action in today’s sessions.

EUR

The euro traded mostly sideways for the past week, thanks to the lack of major catalyst from the euro zone and other major economies. There are still no reports lined up from the euro zone today, although the shared currency is enjoying a bit of support against its currency rivals.

GBP

 The pound jumped to a 4-year high against the dollar in the previous week, lifted by strong UK jobs data. However, the rally failed to carry on as most traders booked profits at key resistance levels. This week’s set of reports should determine whether pound pairs can extend their gains or not, but today’s schedule is empty so a bit of consolidation might be seen.

CHF

 The franc let go of another batch of gains in recent trading, as there were no reports from Switzerland to give the franc a boost. There are still no reports due today since markets are closed and most traders are off on a holiday so expect some sideways movement for franc pairs unless there’s a significant change in risk sentiment.

JPY

The yen managed to hold on to its current levels in the past week, despite dovish remarks regarding the Japanese economy. Analysts are foreseeing more economic weakness in light of the latest sales tax hike, but the BOJ has been unfazed so far. There are no reports due from Japan today as major markets are closed.

Commodity Currencies (AUD, NZD, CAD)

The comdolls showed a bit of weakness in the recent trading days, although the Loonie did get a boost from strong CPI readings. Weak export prospects for New Zealand, particularly in the dairy sector, weighed on the Kiwi. There are no reports due from these economies today as most financial markets are closed and traders are off on a holiday.

By Kate Curtis from Trader's Way