FX MARKET REPORT 05.03.2021
from CrossBorderBoost News Hosted by CBB S
GBP/USD hangs near weekly lows, just above mid-1.3800s. GBP/USD witnessed some follow-through selling on Friday amid a broad-based USD strength. The downside seems limited as the focus shifts to the release of the US monthly jobs report. EUR/USD looks weaker and clinches 2021 lows near 1.1920. EUR/USD loses further ground and drop to the 1.1920 area. German Factory Orders expanded 1.4% MoM in January. US Nonfarm Payrolls will be the salient event later on Friday. EUR appreciation could trigger ECB verbal intervention, always amidst the current (and future) context of subdued inflation. Potential political effervescence around the EU Recovery Fund. Huge long positions in the speculative community. EUR/USD is retreating 0.36% at 1.1921 and faces the next support at 1.1887 (61.8% Fibo of the November-January rally) followed by 1.1808 (200-day SMA) and finally 1.1762 (78.6% Fibo of the November-January rally). On the flip side, a break above 1.2027 (100-day SMA) would target 1.2129 (50-say SMA) en route to 1.2243 (monthly high Feb.25). Dollar Index was up 0.1% at 91.760, a three-month high. USD/JPY was up 0.3% at 108.25, climbing to an eight-month high earlier in the session, while the risk-sensitive AUD/USD fell 0.2% to 0.7710.
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