EUR/USD testing lows near 1.0630 post-ZEW
The selling mood around the European currency is gathering traction today, with EUR/USD now flirting with daily lows near 1.0630.Spot intensified its daily decline today after German ZEW Survey has come in below expectations for the month of March, with both Economic Sentiment and Current Conditions missing initial estimates.On the brighter side, EMU?s Economic Sentiment improved to 25.6 during the current month, surpassing prior forecasts.In the meantime, the better tone around the greenback continues to weigh on the pair, which has now shed around a cent since Monday?s multi-week tops above the 1.07 mark.In the US docket, the NFIB index dropped to 105.3 for the month of March ahead of the release of February?s Producer Prices. At the moment the pair is losing 0.13% at 1.0640 and a break below 1.0619 (55-day sma) would target 1.0611 (short-term support line) en route to 1.0591 (20-day sma). On the upside, the next hurdle aligns at 1.0715 (high Mar.13) ahead of 1.0829 (2017 high Feb.2) and finally 1.0873 (high Dec.8 2016).

GBP/USD struggling near two-month lows
The British Pound remained heavily offered across the board, with the GBP/USD pair trading few pips away from nearly two-month lows touched in the past hour.The pair came under intense renewed selling pressure a day after the UK Parliament passed the Brexit bill, allowing UK PM Theresa May to formally begin the process of ending the country's membership with the EU. Market concerns surrounding the Brexit issue compounded after Scottish First Minister Nicola Sturgeon confirmed plans for a second Scottish independence referendum between the autumn of 2018 and spring 2019. Meanwhile, the US Dollar also saw moderate gains on Tuesday, which further compounded the selling pressure and collaborated to the pair's sharp downslide. Spot accelerated the bearish move and tumbled to 1.2100 neighborhood, its lowest level since Jan. 17, before bouncing off lows to currently trade around 1.2130 region.Market participants now seemed to readjust their positions ahead of this week's key event risks - the FOMC decision and UK employment details on Wednesday, followed by the BoE monetary policy decision on Thursday. The 4 hours chart shows that the price broke below its 20 SMA that anyway remains flat, whilst technical indicators have entered bearish territory, but lost downward strength. Still, the risk is towards the downside, with a break below the 1.2100 figure exposing the 1.2040 region. A recovery beyond the mentioned daily high could see the pair returning up to 1.2200, but selling interest will likely surge around this last, maintaining the upside limited.

USD/JPY manages to hold above 115, despite negative equities
The USD/JPY pair defends mild gains above 115 handle in the European session, as the yen bulls are fighting for control amid risk-off market profile, induced by weaker European equities and pre-Fed nervousness. Risk-off sentiment persists, with the VIX index rising nearly 1%, and keeps the sentiment around the yen buoyed somewhat, which restricts further upside in USD/JPY. However, higher treasury yields continue to spur broad USD buying, which allows the spot to keep 115 handle. Next on tap for the major remains the US PPI data due later in the NA session for fresh incentives.The major finds immediate resistance at 115.53/50 (classic R3/ psychological levels). A break above the last, the major could test 115.62 (Jan 19 high) and 116 (zero figure) beyond the last. While to the downside, the immediate support is seen at 114.42 (100-DMA/ 10-DMA) next at 113.75/59 (20 & 50-DMA) and below that at 113.06/113 (Feb 16 low/ zero figure).

GBP/JPY dumped to lows near 139.50 on Brexit jitters
The GBP/USD pair witnessed steep losses earlier on the day, which triggered a sharp sell-off in GBP/JPY, having eroded 100-pips in the cross.The GBP/JPY pair now sinks -0.60% to 139.55, hovering within a striking distance of daily lows struck previously at 139.42. The GBP bears retain control amid resurgence of ?Hard-Brexit? concerns, after the UK Parliament officially paved the way for the UK PM May to trigger Article 50 by this month-end.Moreover, the pound also suffers from persistent concerns surrounding another Scottish independence referendum announced by the Scottish First Minister Nicola Sturgeon.However, the downside remains capped on the back of moderate gains seen in USD/JPY, in response to higher treasury yields, as investors shift their focus towards the FOMC decision due tomorrow.In the meantime, markets await the US inflation figures and UK jobs data due on the cards ahead of tomorrow?s Fed verdict and Yellen?s presser. 140.05 (daily pivot/ 20-DMA), 140.50/57 (Mar 10 & 11 high), 140.81/96 (classic R1/ 50-DMA) and 139/138.99 (round number/ Mar 9 low), 138.43/38 (classic S3/ Mar 8 low), 138 (zero figure)

USD/CAD retreats back to mid-1.3400s as oil extends recovery
The USD/CAD pair's recovery move stalled ahead of the key 1.35 psychological mark and has retreated back to mid-1.3400s.A goodish recovery bounce in oil markets, which tends to boost demand for the commodity-linked currency - Loonie, seems to be a key factor for the pair's retracement from session peak. In fact, WTI crude oil extended recovery from three-month lows and is now trading with gains of 0.65%, around $48.70 region.Meanwhile, with the Fed rate-hike move on Wednesday seen as a done deal, a moderate pick-up in the US treasury bond yields underpinned the US Dollar demand and is helping the major to hold within previous session's daily trading range. On the economic data front, the release of monthly PPI print from the US, followed by API report on US crude stockpiles are due for release during NA session on Tuesday.Bears would be eyeing for a decisive break below 1.3425-20 immediate support, below which the pair is likely to break through the 1.3400 handle and head towards testing 1.3375-70 support area.On the upside, 1.3475-80 region now seems to have emerged as immediate resistance, which if cleared has the potential to lift the pair beyond the 1.3500 handle towards its next resistance near 1.3515 level.

 

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