After the rising jobs report last week, greenback hold steady on Monday. Investors consider that Fed will raise the interest rate in March while inflation in the United State forecast lower: Core CPI and CPI in February predict at 0.2% lower than in January. These indices may express the slowdown of rising inflation. At the moment, inflation in USA is 2.1% higher than Fed’s target by 0.1%. I consider U.S. dollar may try to hold steady before FOMC meeting next week or may edge higher because investors speculate on high possibility interest rate changes.
EUR/USD may continue its sideways movement between 1.2200 – 1.2450 points. If German and EU ZEW economic sentiment in March at 17.00 p.m. is better than 17.8, it may support euro to move in green. However, I am afraid that U.S. trade tax may decrease the confident of world economic so the economic sentiment in European countries may drop lower. I also suggest listening spring forecast statement of the United Kingdom at 18.30 p.m. and Bank of Canada chair’s speech at 21.15 p.m. which may help Loonie to break the support line at 1.2783 points.
Searches for the word “Bitcoin” on Google have dropped and Bitcoin price also went down, forecasting that the interest of people in the crypto market may decrease. While the confirmation line of “double top” pattern on Bitcoin price’s chart has been broken, it shows that this reversal pattern doesn’t occur anymore. Bitcoin price may try to recover and rise back above 10,000USD once again.
By Niramon Nitnitiphruet
Financial analyst, Olymp Trade.