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26 Mar 2015
What's next? 200 pips swings in $EURUSD are the new normal; Watch out US GDP
FXStreet (Tokyo) - The US Dollar traded higher on Tuesday as investors welcomed the US jobless claims good report that confirmed that weekly initial claims remain below the 300K mark.
The Dollar index initially fell to the 96.20 area, but the DXY turned-back to daily highs around 97.60 where it remains pricing. The movement put the EUR/USD under pressure with the pair posting 200 pips losses from 1.1050 to today's lows of 1.0855. A 200 pips movement in one single day; is it much? Well, it is the new normal.
The EUR/USD moved over 400 pips on March 18, the Fed-no-more-patience day. then almost 300 pips down on March 19; before climbing around 200 pips on March 20 and also March 21. 100 pips down and up on March 24 and 25. Today the swing was for 200 pips down.
It seems a pretty nice volatility out there. The US Dollar index remains in the negative territory in the weekly basis. However, as FXStreet analyst Pablo Piovano commented in a recent report, "positive results from tomorrow's docket in the US economy carry the potential to push the USD higher and revert the negative weekly performance."
What Happened on Thursday?
- UK retail sales rose 5.7% year-on-year in February
- US Initial jobless claims fall to five weeks low
- United States Markit Services PMI rose from previous 57.1 to 58.6 in March
What's next on Friday?
All about US Gross Domestic Product. The GDP could be the catalyst for more bearishness in the EUR/USD and overall gains for the US dollar. Market expects an upward revision to 2.4% from the second estimated of 2.2%.
Before that, Pay attention to the Japanese CPI and Retail sales. It could add a point of salt to the Asian session.
The Dollar index initially fell to the 96.20 area, but the DXY turned-back to daily highs around 97.60 where it remains pricing. The movement put the EUR/USD under pressure with the pair posting 200 pips losses from 1.1050 to today's lows of 1.0855. A 200 pips movement in one single day; is it much? Well, it is the new normal.
The EUR/USD moved over 400 pips on March 18, the Fed-no-more-patience day. then almost 300 pips down on March 19; before climbing around 200 pips on March 20 and also March 21. 100 pips down and up on March 24 and 25. Today the swing was for 200 pips down.
It seems a pretty nice volatility out there. The US Dollar index remains in the negative territory in the weekly basis. However, as FXStreet analyst Pablo Piovano commented in a recent report, "positive results from tomorrow's docket in the US economy carry the potential to push the USD higher and revert the negative weekly performance."
What Happened on Thursday?
- UK retail sales rose 5.7% year-on-year in February
- US Initial jobless claims fall to five weeks low
- United States Markit Services PMI rose from previous 57.1 to 58.6 in March
What's next on Friday?
All about US Gross Domestic Product. The GDP could be the catalyst for more bearishness in the EUR/USD and overall gains for the US dollar. Market expects an upward revision to 2.4% from the second estimated of 2.2%.
Before that, Pay attention to the Japanese CPI and Retail sales. It could add a point of salt to the Asian session.