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3 Currencies To Watch This Week

By Kathy LienForexApr 19, 2021 05:00PM ET
www.investing.com/analysis/3-currencies-to-watch-this-week-200573993
3 Currencies To Watch This Week
By Kathy Lien   |  Apr 19, 2021 05:00PM ET
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All of the major currencies traded higher on Monday as investors continued to drive the U.S. dollar lower. When a rise in Treasury yields, sell-off in U.S. stocks, strong payrolls and retail sales reports can’t lift the dollar, some wonder if it is time to worry. For the past few months, investors have been pricing in a U.S. recovery and, with more than half of the U.S. adult population receiving at least one COVID-19 vaccine shot, strong growth in the second quarter is almost certain. However, investors have also been piling into the reflation trade since the beginning of the year, and that trade is growing tired. According to the CFTC, U.S. dollar net shorts are at their lowest level since June 2018. The greatest risk for the U.S. dollar is faster vaccine rollouts and recoveries in other countries, which is only a matter of time.
 
The U.S. dollar drove currency movements on Monday, but three other currencies are in focus this week – the euro, sterling and the Canadian dollar. EUR/USD broke above 1.20 for the first time since early March. The European Central Bank meets on Thursday, right before April PMIs are released. Germany’s Bundesbank confirmed that economic output decreased in the first quarter and it's highly unlikely that France and Spain will escape contractions. The PMIs should be subdued, which will keep the central bank cautious. However, every day more shots are going into arms across Europe and with time, the recovery will accelerate. The next ECB meeting is on June 10, and a lot could happen in seven weeks. The best course of action for the central bank is to keep policy unchanged and offer cautious optimism. The current situation is grim but growth should accelerate in the third quarter.  With that said, 1.2050, the 100-day SMA is a very important resistance level for EUR/USD.
 
The Canadian dollar hit a one-month high against the U.S. dollar before giving up its gains to end the day lower. The Bank of Canada, which meets on Wednesday, is in a similar boat as the ECB. COVID-19 cases are surging with much of the country in strict lockdown. Unlike the Eurozone, however, data hasn’t been terrible. Job growth is strong, the housing market is robust and manufacturing activity accelerating. Although tighter restrictions could weigh on demand, for now, incoming data bolsters rather than weakens the BoC’s confidence. Add to that the positive implications of a U.S. recovery and Canadian policy-makers have more reasons than the Europeans to be optimistic. 
 
There is no monetary policy announcement for the UK this week, but jobless claims, inflation, retail sales and PMI numbers will keep sterling in focus. After a successful vaccine rollout, the UK economy is widely expected to gain momentum. The lockdown has ended, with pubs and restaurants reopening. Over the past few weeks, restrictions have eased significantly and these steps will provide a big boost to the recovery. Sterling should outperform other currencies this week as we are looking for stronger numbers all around. 
3 Currencies To Watch This Week
 

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3 Currencies To Watch This Week

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Comments (21)
Joško Croat
Joško Croat Apr 22, 2021 5:51PM ET
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Despite all the problems and crises, the Eurozone managed to suppress the dollar. But unfortunately these all countries covid has mutated and vaccines as asteasics do not work while other vaccines are being tested. Unfortunately we are at the beginning again. A new crisis is yet to come by summer.
Joško Croat
Joško Croat Apr 22, 2021 5:51PM ET
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AstraZeneca
Makkah Madinah
Makkah Madinah Apr 22, 2021 4:57PM ET
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natasha zecevic
natasha zecevic Apr 21, 2021 7:24AM ET
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hello
William Cole
William Cole Apr 21, 2021 6:52AM ET
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Turkish Lira is the place to be if you want too burn Currency .If you want a stronger Currency try UK Pound or Swedish Krona. Summer is coming and in previous years there was.... money too be made in holiday destination currency mark up...so what happens this year. interesting Times
Edgar Pineda
Edgar Pineda Apr 20, 2021 5:59PM ET
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Also bitcoin will never be aprove by goverments to be used as their currancie
Ernest Taylor
Ernest Taylor Apr 20, 2021 5:59PM ET
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Haha thats spelling though
Edgar Pineda
Edgar Pineda Apr 20, 2021 5:56PM ET
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Doge coin is fake illutions for the poor
Chri ANDREW
Chri ANDREW Apr 20, 2021 9:05AM ET
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please how can I trade... because I am new
Patti R Callanhan
Patti R Callanhan Apr 20, 2021 9:05AM ET
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Hello
Patti R Callanhan
Patti R Callanhan Apr 20, 2021 9:05AM ET
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How are you?? Im Pattir
Patti R Callanhan
Patti R Callanhan Apr 20, 2021 9:05AM ET
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Im a trader here; I would love to tell you all about the trademark ™️
Godwin Sakala
Godwin Sakala Apr 20, 2021 9:05AM ET
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May I also benefit from this
MARK MK
MARK MK Apr 20, 2021 3:52AM ET
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Well written as always. I like your in-depth market analysis specifically for DXY and EURUSD
Sumit Kumar
Sumit Kumar Apr 19, 2021 9:19PM ET
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ripple and tron are future of currencies but the real currency will always stay
Meiysam Rasoli
Meiysam Rasoli Apr 19, 2021 9:19PM ET
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👙
Hadi Warsito
Hadi Warsito Apr 19, 2021 9:09PM ET
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I like this fundamental analysis particularly EURUSD. Keep posting every day!
Brax Tucker
Brax Tucker Apr 19, 2021 7:41PM ET
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Doge is about to be listed onto webull .. elon keeps pumping it .. win win imo .. edit : its all gambling apes
Seth Kuyper
Seth Kuyper Apr 19, 2021 7:16PM ET
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Dogecoin is a joke
Smarteck Production
Smarteck Production Apr 19, 2021 6:23PM ET
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I think it's still safe to buy dogecoin
Patti R Callanhan
Patti R Callanhan Apr 19, 2021 6:23PM ET
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Hello; It might be safe to invest in dogecoin; i believe each trading asset has its gain at a time; I invest in good NASDQA investment and Stock bonds.
Daniel McTeague
Daniel McTeague Apr 19, 2021 5:55PM ET
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Dogecoin is skyrocketing
Daniel McTeague
Daniel McTeague Apr 19, 2021 5:55PM ET
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Dogecoin
Nasir Pourmohammad
Nasir Pourmohammad Apr 19, 2021 5:41PM ET
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tanks
CHAD TENDIES
CHAD TENDIES Apr 19, 2021 5:37PM ET
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I have 2 for you: Silver, gold
RED OFFLINE
RED OFFLINE Apr 19, 2021 5:37PM ET
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i like that but it's too hard for beginners and highly volatile
RED OFFLINE
RED OFFLINE Apr 19, 2021 5:37PM ET
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but if u master those metal u did it congratulations u r rich
cody dunlap
cody dunlap Apr 19, 2021 5:35PM ET
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safemoon is sky rocketing
Alejandro Fernández
Alejandro Fernández Apr 19, 2021 5:35PM ET
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to the mooon (.1 cents is the goal)
Alejandro Fernández
Alejandro Fernández Apr 19, 2021 5:35PM ET
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to the moon
Seth Kuyper
Seth Kuyper Apr 19, 2021 5:35PM ET
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ponzi scheme.
vee bee
vee bee Apr 19, 2021 5:31PM ET
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Impeach 46
Kristoff Hillory
Kristoff Hillory Apr 19, 2021 5:31PM ET
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let's see
Alex Carballo
Alex Carballo Apr 19, 2021 5:31PM ET
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na watch doge
Ik Peter
Ik Peter Apr 19, 2021 5:17PM ET
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wow, nice
Wird Butt
Wird Butt Apr 19, 2021 5:17PM ET
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Thanku
 
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