The main currency pair on Forex continues its boring movement within side channel. Still traders cannot find reasons for a trend – positive or negative. Mainly, such passive attitude is explained by interesting movement of other currencies as well as absence of news-drivers for the market. However, it means that markets are generating power ahead the new sharp movement. We just have to understand which side movement is most possible, and where we will have only speculative trades. So, Friday news on wholesale inventories and sales caused the re-estimation of the USA GDP growth to declining. Now the leading investment banks are waiting for the minimum increase in the first quarter (0.2 % – 0.4% yoy), while the estimation made by BofA/ML may be zero. Inventories in February decreased by 0.5% after growth during previous months by 0.2%. The good point here is that economic activity might grow as a result and that reflects high demand. The bad point is all the above is decreasing the gross output. As well wholesales sales is effected negatively. In February it decreased by 0.2% after decline in January by 1.9% and now it is fifth month in a row with the dropping indicator. Totally, this report reflects the decline of sales in the country, meanwhile the inventories are dropping faster, showing the decline of the production and import. Today we do not have any important news in the economic calendar, hence, EURUSD may not break the annoying now trading range.
British currency has shown maximum growth pace in the month. Probably, the main reason was the inability of EURGBP go higher than 0.8000. Currently the traders are fixing their profits that is pulling up GBPUSD. Cable now is trading above 1.4230. At least it is possible while traders have not used to the idea that pound can be steadily lower than 1.40. We do either. Tomorrow the UK inflation data will be released. Often this statistics significantly influences the pound price.
British currency has shown maximum growth pace in the month. Probably, the main reason was the inability of EURGBP go higher than 0.8000. Currently the traders are fixing their profits that is pulling up GBPUSD. Cable now is trading above 1.4230. At least it is possible while traders have not used to the idea that pound can be steadily lower than 1.40. We do either. Tomorrow the UK inflation data will be released. Often this statistics significantly influences the pound price.
Canadian dollar grew sharply on Friday. The prime pressure to the pair appeared after the growth of oil prices – they returned to the area of highs from two weeks ago. However, the main movement occurred due to the strong report of labor market. The unemployment level dropped from 7.3% to 7.1%, though the change was not expected. The important side – it happened without decline of economically active population. It remained at 65.9% level. The employed population increased to 40.6 k in March, though the expected increase was 4 times less. As well the important is the fact that main growth was due to whole-day employed population – the increase was more than 35.5 k. The population working not the whole day increased by 5.3k. On Wednesday the Bank of Canada will announce its interest rate decision. After such indicators received from the labor market, we should not wait for rate decrease as well as soft tone of the comments from officials.
