London Forex Report: US Healthcare Bill Key For Risk Sentiment

London Forex Report: US Healthcare Bill Key For Risk Sentiment

London Forex Report: USD Markets continued to consolidate amid ongoing reassessment on potential delay in President Trump’s growth policies due to concerns about the new US Healthcare bill passing its first congressional vote due today. The Dollar Index and US treasuries yields continued to pull back on further paring of optimism that Trump policies will filter down to the US economy anytime soon. Yesterday’s housing data from the US disappointed. US existing home sales slipped 3.70% MoM to annualised pace of 5.48 million in February after rising to a decade high of 5.69 million in January. Higher borrowing cost and scarcity of housing inventory may have dampened sales of previously owned homes at the start of the year as total sales units slumped to the lowest level since March last year. Dollar Index extended its decline to settle 0.14% lower at 99.67 on continued unwinding of bullish bets.

EUR Eurozone’s current account surplus dropped to a fifteen-month low of €24.1 billion in January after a surplus of €30.8 billion in December, dragged by the decline in goods surplus. Goods trade balance slipped from €31.6 billion to €24.1 billion in January and contributed to the fall in total surplus

GBP closed virtually flat against the USD on Wednesday. A terror related shooting incident in London likely weighed on GBP sentiment overnight. Developments regarding ‘Brexit’, along with the UK’s retail sales readings, are likely to be key drivers for GBP near term.

JPY Japan’s all industry activity index climbed 0.10% MoM in January after a drop of 0.20% MoM in December. Indicating growth is picking up in the first quarter, construction sector expanded 4.10% MoM which offset the 0.40% MoM drop in industrial production. A second report showed that department stores sales dropped 1.70% YoY to ¥433.7 billion in February followed a 1.20% YoY slump in January, no thanks to the drop in clothes and household goods categories.

EURUSD
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bearish

Technical: As 1.0750 supports 1.0830 is the primary upside objective ahead of 1.0985 equidistant swing objective. A close back below 1.07 would concern near term bullish bias.
Retail Sentiment: Bearish
Trading Take-away: Long

GBPUSD
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bearish

Technical: 1.2450 upside objective achieved as symmetry swing support at 1.2420 supports 1.2570 becomes the next upside objective only below 1.2370 concerns near term bullish bias.
Retail Sentiment: Bearish
Trading Take-away: Long

USDJPY
Outlook: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks): Bearish

Technical: 111.75 range support breached the daily close below here suggests downside range break and opens 108.43 equidistant swing objective to the downside, near term resistance is sited at 111.75. Only over 113 stems near term selling pressure.
Retail Sentiment: Bullish
Trading Take-away: Short

EURJPY
Outlook: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks): Bearish

Technical: The closing breach of 120 concerns near term bullish bias and opens a test of pivotal 119.30. Near term resistance is sited at 120.65 only over 121.80 arrests near term selling pressure.
Retail Sentiment: Bullish
Trading Take-away: Short

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