Global macro overview for 06/03/2018

The beginning of this week brought a deterioration in the US Dollar prices across the board. The market participants cannot really blame the poor data releases because yesterday's final PMI reading for services in February was slightly higher than expected and amounted to 55.9 points. On the other hand, the ISM index for services slightly decreased to the level of 59.5 points from 59.9 points in January. Today, the focus will be on data about orders for durable goods as well as industrial orders. Markets will also be sensitive to monetary policy issues presented by Fed members - both William Dudley and Lael Brainard will take grab the investors attention later toady. Nevertheless, the market seems to be waiting for the end of the week data releases in form of the US labor market data, but those should not change the market expectations for the Fed interest rate hike in March.

Let's now take a look at EUR/USD technical picture at the H4 time frame. The pair has managed to erase most of yesterday's down movement caused by a reaction to the result of parliamentary elections in Italy. Currently, the rate fluctuates around the level of 1.2340 in anticipation of new impulses that may become a stimulus to break out of the wider range. So far the first step wad made ant the technical resistance at the level of 1.2366 had been violated, so the next target for bulls is at the level of 1.2537 (last swing high).


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