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US Dollar Forecast: USD/JPY Testing Key Support as Yields Slide Lower

US Dollar Forecast: USD/JPY Testing Key Support as Yields Slide Lower
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EUR/USD flirting with the 1 1900 level as week draws to a close

Apr 9, 2021 18:56 GMTFXStreet News EUR/USD has reverted back towards the 1.1900 figure from earlier session lows around the 1.1870 mark. EUR/USD has traded as a function of rate differentials on Friday. US PPI came in much hotter than expected, adding upside risk to next week’s CPI report. EUR/USD has reverted back towards the 1.1900 figure from earlier session lows around the 1.1870 mark. The pair, which still trades lower on the day by about 15 pips or just over 0.1%, is likely to consolidate within its recent 1.1860-1.1920ish intra-day parameters over the next few hours as FX volumes drop ahead of the weekend. For now, the pair has managed to move back to the north of its 200-day moving average, which currently resides at 1.1885.

Wall Street Close: Another day, another record close for the S&P 500 as Fed eases inflation worries

Apr 9, 2021 22:37 GMTFXStreet News US equity markets saw a late surge despite a lack of fundamental catalysts at the time on Friday. Some desks cited Fed jawboning on how the coming spike in inflation will be transitory as supportive for stocks. The S&P 500, Dow and Nasdaq 100 all clinched record closing levels. US equity markets saw a late surge despite a lack of fundamental catalysts at the time on Friday. That meant that the S&P 500 was able to close at a fresh record high at 4127 (up 0.7% on the day), the Dow managed to clinch the 33.8K mark (up 0.9% on the day), also a record high. Meanwhile, though the Nasdaq 100 was not able to clinch an intra-day all-time high, it did manage to post a record close at 13845 (up 0.6% on the day). The Russell 2000 was flat and the CBOE saw a slight decline of 0.38 to just above 16.50.

GBP/USD consolidating above 1 3700 with markets in weekend mode already

Apr 9, 2021 21:16 GMTFXStreet News GBP/USD dipped as low as the 1.3670s but is now consolidating above 1.3700 again. Cable was driven by the USD side of the equation on Friday, which moved in tandem with US bond yields. GBP/USD saw a brief spell of weakness early on during European hours, dipping as low as the 1.3670s, but has recovered modestly in recent trade and looks likely to close out the week just above the 1.3700 big figure. Support in the form of the 25 March low came in handy, it seems. Perhaps this will be the start of a longer-term double bottom. Conversely, if cable continues to suffer in the coming week and breaks below support in the 1.3670s, that could open the door for an extension of the selling pressure towards the next major area of support around 1.3570.

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