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News, Events, and Stories about currency from around the world.

Talking Points:

- US Stocks showed a bit of recovery in the latter-portion of yesterday’s session, but those gains could not hold as Fibonacci resistance came-in after the US close, and the S&P 500[1] is moving right back towards the Monday low. This exposes the double bottom from the February sell-off around 2,530, and if that cannot hold up on a re-test, the door is opened to bearish breakouts in the S&P 500. We discussed this in yesterday’s webinar, which is available from the following link: S&P 500 Starts Q2 on a Sour Note as EUR/USD Tests Support[2].

- For all of the cross-market fireworks currencies have been rather tame, and this could be a good thing for a trader as support and resistance has largely remained respected up to this point. Below, we look into a few of the more popular areas by looking at the range in the US Dollar, the build of support in EUR/USD[3] and some resistance areas around USD/JPY[4]. Of particular note is the support-build in EUR/USD this morning after a disappointing set of inflation numbers were released. The fact that bulls came in to show higher-low support helps to highlight the continued topside potential in the pair.

- Are you looking to improve your trading approach? Check out Traits of Successful Traders[5]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[6].

Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[7].

EUR/USD Holds Support After Core Inflation Misses Expectations

EUR/USD is holding on to support after a slightly disappointing release of March inflation numbers[8]. Headline inflation printed in-line at 1.4% for the Euro-Zone in March, and core inflation came in just a touch below the expectation, coming in at one-percent flat versus an expectation for a 1.1% print. Despite the disappointment, EUR/USD was unable to encroach upon yesterday’s low which remained above the March swing-low, and this keeps the door open for topside plays in the pair[9] as we move towards Friday’s release of Non-Farm Payrolls numbers.

EUR/USD Hourly Chart: Bounce Around Inflation Numbers, Bears Unable to Take-Out Lows

eurusd hourly chart Chart prepared by James Stanley[10] Yen as the Euro 2.0? Notable here is how Japan is now seeing inflation at a faster pace than Europe[11]. Japanese inflation came-in at 1.5% in February while Europe saw that 1.4% print in March. We’ll have to wait to get March inflation figures out of Japan, but this is something that can build-in to further Yen gains as we move deeper into the year. While most of 2017 was spent with markets debating the timing

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currensceneFLOGO WHTsquareThough not the oldest form of currency, some form of shell money appears to have been found on almost every continent. The shell most widely used worldwide as currency was the shell of Cypraea moneta, the money cowry.

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