➔ Forex – Yen weakens after March trade deficit widens more than expected
➔ Forex – JPY trends weaker ahead of March trade data
➔ Forex – EUR/USD down at the end of U.S. session
GBP/USD edged up 0.06% to 1.6798 at Friday’s close, and ended the week 0.45% higher. The pair rose to highs of 1.6840 on Thursday, the strongest since November 18 2009. Sterling strengthened broadly after data earlier in the week showed that the U.K. unemployment rate fell to a five year low of 6.9% in the three months to February.The upbeat data bolstered expectations that the Bank of England could raise interest rates as soon as the first quarter of 2015.
USD/JPY traded at 102.45, up 0.02%, ahead of the data. The US Dollar Index traded at 79.94, up 0.02%.Japan’s March trade data is due at 0850 Tokyo time (2350 GMT). The forecast is for a trade deficit worth ¥1.070 trillion, with exports seen up 6.5% year-on-year and showing a 16.7% increase.Last week, the dollar ended the week higher against the yen as market sentiment was boosted by easing tensions over Ukraine, while upbeat U.S. economic reports also supported the dollar.Concerns over the crisis in eastern Ukraine however continued over the Easter weekend as the U.S. and the European Union pushed plans to “de-escalate” the crisis.The dollar also received a boost after upbeat U.S. data on manufacturing and employment on Thursday pointed to underlying strength in the economy.The Labor Department rep.
1. Buy GBP/USD Above 1.6825- TG: 1.6845/ 1.6875 SL 1.6785
2. Sell GBP/USD Below 1.6770- TG: 1.6750/ 1.6720 SL 1.6805