{"id":170349,"date":"2020-05-11T10:52:20","date_gmt":"2020-05-11T14:52:20","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=170349"},"modified":"2020-05-11T10:52:20","modified_gmt":"2020-05-11T14:52:20","slug":"the-week-ahead-the-commitment","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/05\/the-week-ahead-the-commitment\/","title":{"rendered":"The Week Ahead: The Commitment"},"content":{"rendered":"
May 11, 2020<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

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EURAUD Sinks as Rescue Drags On<\/strong><\/h2>\n

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The euro is under pressure as Europe\u2019s unity is again in question. While most major central banks opened their balance sheets to revive their economies, the clash between Germany\u2019s constitutional court and the European Central Bank has added a layer of uncertainty.<\/p>\n

The ECB will have to justify its overly stretched asset purchase program or may lose Bundesbank\u2019s support. Perhaps this week\u2019s GDP number will do Lagarde a favor. A low reading may inject a sense of urgency and put the single currency back on track.<\/p>\n

The pair is heading towards\u00a01.6110<\/strong>, while\u00a01.7100<\/strong>\u00a0around the 30-day moving average is key resistance.<\/p>\n

USDJPY Weakens on Negative Rates Rumours<\/strong><\/h2>\n

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The US dollar continues to drift lower against the Japanese yen despite businesses reopening across states. Markets are wary of a worse-than-expected downturn, which could force the Fed into uncharted territory.<\/p>\n

Speculations of negative rates by the end of the year are weighing on the greenback. With the unemployment rate nearing 15%, a rebound in the real economy is on everyone\u2019s wish list. Otherwise, the dollar may continue to suffer from the pricing of a protracted recession.<\/p>

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Free Reports:<\/p><\/div>\r\n

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<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

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<\/a>\r\n\t Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p>

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USDJPY has retraced more than half of its March rally. The 61.8% (105.10<\/strong>) Fibonacci level is the next target, and\u00a0108.00<\/strong>\u00a0is the immediate resistance.<\/p>\n

USDCAD Struggles as Oil Recovers<\/strong><\/h2>\n

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The Canadian dollar has shown some strength lately as oil prices rallied back from the abyss. Investors are betting on a gradual recovery in oil demand, and in conjunction with production cuts, Canada\u2019s trade-dependent economy could be the main beneficiary.<\/p>\n

Despite a surge in Friday\u2019s unemployment figure, the loonie may find support from hopes that fiscal and monetary policies would start to ease economic strains.<\/p>\n

The pair remains in sideways actions between\u00a01.3850<\/strong>\u00a0and\u00a01.4250<\/strong>\u00a0until a breakout chooses the next direction.<\/p>\n

GBPJPY Falls Amid Economy\u2019s Darkest Times<\/strong><\/h2>\n

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The Bank of England pledged a \u2018total and unwavering commitment\u2019 last Thursday as the economy is facing the sharpest decline in over 300 years. The central bank forecasts a 25% drop in GDP in the second quarter and this week\u2019s Q1 data will define the baseline from the start of the crisis.<\/p>\n

A serious contraction from March may raise voice in favor of further stimulus. The pound sterling could continue to grind lower against the safe-haven currency.<\/p>\n

The pound has started to head lower near the 50% (134.50<\/strong>) Fibonacci retracement level. A drop below\u00a0128.00<\/strong>\u00a0could lead to a sell-off into 124s.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

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By Orbex EURAUD Sinks as Rescue Drags On The euro is under pressure as Europe\u2019s unity is again in question. While most major central banks opened their balance sheets to revive their economies, the clash between Germany\u2019s constitutional court and the European Central Bank has added a layer of uncertainty. The ECB will have to […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-170349","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/170349","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=170349"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/170349\/revisions"}],"predecessor-version":[{"id":170358,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/170349\/revisions\/170358"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=170349"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=170349"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=170349"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}