Daily market review 24 March

** Manufacturing PMI – March
** Services PMI – March
** PMI Composite – March
11:00 France, 11:30 Germany, 12:00 Euro zone.
Traditionally, economists do not expect significant changes in these indicators, but the overall improvement or deterioration may still provoke the growth of EUR volatility. Further improvement may provide tangible support to the euro, but given the steady growth the day before I do not exclude the correction of these indicators, which is generally moderately negative for the euro.
15:30 ** PMI Composite – February (Canada)
The report on inflation in Canada has a high impact on the currency, but no less important for buyers of the Canadian dollar is the price of oil. The growth of inflation only in conjunction with rising oil prices can provide the necessary support for the Canadian dollar.
15:30 *** Durable Goods Orders – February (USA)
The increase in this indicator is favorable for the US dollar, but not always the growth in the volume of orders for long-term goods is accompanied by the strengthening of the US dollar. Given the general situation on the market, a sharp decline in the figure could put pressure on the dollar.
15:30 ** Manufacturing PMI – March (USA)
This is a preliminary estimate, but the growth of the indicator may have little support for the US dollar. But further decline is clearly negative for the US currency.
The US dollar recovered slightly on expectations that US President Trump would refuse to reform the health care law unless he collected the required number of votes in the House of Representatives on Friday. On Thursday, the Republicans could not enlist the necessary support and postponed the vote.
Given that the news background is the most saturated for the euro and the Canadian currency – the change in the US dollar’s dynamics of the basket will be most vividly worked out for EURUSD and USDCAD.
The objectives of the EURUSD purchases are 1,0800-1,0820.

The intraday corridor, which we found yesterday – 110,80-111,40, remains relevant. In the priority, we save sales on a pair with a target at 110.00-109.40.

Inside the day, growth is more and more complicated. Either the pound takes into account too many extraneous factors, or wants to go for a slightly deeper correction than 60-75 points. So, since March 14, during the whole growth of quotations to the level of 1,2500, the correction downwards averaged about 60-65 points.

With the resumption of growth and breakdown of the level of 1.2500, buyers’ targets will be the levels of 1.2524 – 1.2548. So, if today they vote for changes in the US healthcare system, the dollar may resume falling and the pair will grow.

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