IFX Market Report: Tuesday 6th April 2021

The US Dollar has dropped lower in recent days as Friday’s seven-month high non-farm payrolls boosted global risk appetite and weighed heavy on the safe-haven Greenback. The US economy added 916K jobs in March, the most in 7 months and far surpassing expectations of a 647K forecast, on the back of easing restrictions, declining Covid-19 infection rates, rapid distribution of vaccines and robust fiscal support.

ISM Services PMI also pointed to the strongest growth in services activity on record, coming in at 63.7. Well above consensus estimates of a 59 print. These better-than-expected economic data releases are the sole reason for improved market sentiment and paved the way for the under-fire Euro to peg back lost ground against the Greenback.

GBPUSD opened on Monday at 1.3819 and due to it being a bank holiday, it was the Dollar giving the pair its direction. Cable finished the day at 1.3893.

GBPEUR was also able to gain some upside on Monday – opening at 1.1716 and closing at 1.1775

EURUSD made a loss on Monday as a weaker USD allowed the Dollar to capitalize. The pair started the session at 1.1749 and closed at 1.1798.

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