April 13, 2022
EUR/USD: The European currency fell during the trading session on Tuesday. The pressure on the euro was exerted by the strengthening of the dollar, as well as weak statistics on business optimism in Germany. Market participants seriously admit that if the background does not improve, the economy of the currency bloc will face a recession. Market attention also shifted to the ECB policy meeting due later this week, with money markets pricing in about 70 basis points of interest rate tightening by December. Since the likelihood of monetary tightening is small, the euro has no chance of recovery. Immediate support is seen at 1.0820, a break below could take the pair towards 1.0750.
SELL STOP 1.0820/TP 1.0750/SL 1.0840
GBP/USD: Sterling strengthened slightly on Tuesday, hovering around the $1.30 level for its third session in a row, having shown little reaction to news that Britain’s prime minister and finance minister will receive fines for breaking lockdown rules. Immediate support is seen at 1.2970, a break below could take the pair towards 1.2900.
SELL STOP 1.2970/TP 1.2900/SL 1.3000
USD/CAD: The Canadian dollar was little changed against the greenback on Tuesday, recovering from its weakest level in nearly four weeks, as oil prices jumped and U.S. data showed a measure of underlying inflation climbing less than expected in March. Investors have been bracing for the Federal Reserve and the Bank of Canada to move aggressively to tamp down inflation. Canada’s central bank is expected to raise interest rates by a half-percentage-point on Wednesday. Immediate support is seen at 1.2600, a break below could take the pair towards 1.2540.
SELL STOP 1.2600/TP 1.2540/SL 1.2620