U.S Equity market took a wild ride during session on Wednesday as uncertainty surrounding U.S. – China trade negotiations continued to cause wild swings on the global marketplace. News about some progress reached in negotiations has helped improve the short-term sentiment but the whole picture still remains strongly bearish for as long as the trade feud is on the docket.
Important economic indicators lie ahead. Of uppermost importance will be the US Non-Farm employment change. Economists are expecting the U.S economy to have generated 188,000 jobs in the month of March, well below the astonishing February figure of 313,000. Revisions to the previous data are possible but the presence of 130,000 setback in the forecast may put additional pressure on the USD. Still, the market seems to be heavily preoccupied with U.S –China trade negotiations and NFP report seems to have been pushed into the background.
Recent developments from China-US frontline suggest both countries have reached some progress in the negotiations and signs of willingness to put an end to the trade feud come to the surface.
EUR/USD, the most popular currency pair is currently trading at 1.225, 62 pips down from it opening price at 1.2287. Significant psychological support is at around 1.2200 level and looking at chart it appears there is little room for an opportunity to break below it this time.
Events to watch:
- Friday 12:30 PM GMT, U.S, Average Hourly Earnings
- Friday 12:30 PM GMT, U.S, Non-Farm Employment Change