<p style=““ class=“text-align-justify“>The lack of any negative headlines in itself is a positive development, and that is what’s helping broader market sentiment today I would say. The banking turmoil has caused plenty of panic and worries but it looks like we are finally seeing traders and investors breathe a much needed sigh of relief.</p><p style=““ class=“text-align-justify“>2-year German bond yields are now 20 bps today to 2.52% while 2-year Treasury yields are up 15 bps to 4.07% at the moment.</p><p style=““ class=“text-align-justify“>It still doesn’t take away from the plunge that we have seen in the past week or so but it is at least a start. That indicates safety bets are starting to abate and we are seeing equities benefit as a result. Here’s a snapshot of things in Europe:</p><ul><li>Eurostoxx +1.8%</li><li>Germany DAX +1.7%</li><li>France CAC 40 +1.7%</li><li>UK FTSE +1.4%</li></ul><p style=““ class=“text-align-justify“>Meanwhile, S&amp;P 500 futures are also seen up 25 points, or 0.6%, at the moment with Dow futures also seen up 0.6% and Nasdaq futures up 0.3% on the day.</p><p style=““ class=“text-align-justify“>In FX, things are more mixed though but the Japanese yen is among the laggards as bond yields climb higher. USD/JPY is up 0.8% to 132.30 levels now with the dollar sitting more mixed – down against the euro and franc but up against the pound and antipodeans.</p>

This article was written by Justin Low at www.forexlive.com.

<p>On the daily chart below, we can
see that the price has eventually break above the downward <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a>, but the buyers couldn’t extend
the rally much as the sellers are leaning on the red long period <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
average</a>. The US Dollar is under pressure as the market expects the Fed to cut
interest rates as soon as June and lead to big cuts before the end of the year.
</p><p>We also have a tentatively
positive risk sentiment as the central banks took emergency measures to calm the
markets amid the troubles in the banking sector. It’s all about the sentiment
lately and it can turn on a dime, so make sure to follow <a target=“_blank“ href=“https://www.forexlive.com“ target=“_blank“ rel=“follow“>forexlive</a> to never miss a beat. </p><p>On the 4 hour chart below, we can
see that the buyers are struggling at the 0.67 handle as the sellers are
fighting hard to defend that level. The buyers are nevertheless leaning on the
red long period moving average, but it’s likely that the next direction will be
decided by the <a target=“_blank“ href=“https://www.forexlive.com/EconomicCalendar“>FOMC
decision tomorrow</a> where the Fed is expected to deliver a dovish 25
bps hike. </p><p>In case the Fed decides to push
back against the market pricing and keep with its tightening plan, we may see
the greenback coming back strongly. </p><p>On the 1 hour chart below, we can
see that the price got stuck in a box around the 0.67 handle. For the buyers, a
break above the box would give more control and we should see a rally towards
the next <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> at 0.6781. For the sellers, a
break below the box would give more conviction, and may lead to a fall below
the trendline to invalidate the change in trend and resume the original
downtrend. </p>

This article was written by ForexLive at www.forexlive.com.

<ul><li>Prior -2.5%; revised to -2.3%</li></ul><p>After the slump in December, there was a notable bounce in euro area construction activity in January. Looking at the breakdown, building construction increased by 4.2% and
civil engineering by 3.0%.</p>

This article was written by Justin Low at www.forexlive.com.