Home Analysis Forex Weekly Forecasts – April 4th,2022

Forex Weekly Forecasts – April 4th,2022

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Forex Weekly Forecasts – April 4th,2022 - forexspacex.com

In this segment, we provide insights and observations from financial analysts for the latest trends in the foreign exchange market. This helps you to predict and capture the latest price movement easily.

USD/RUB – US Dollar Russian Ruble

The Russian ruble is steady on Monday morning after Russia’s central bank imposed strict controls against the exit of multinational firms from operations in Russia. According to financial analysts, US and western sanctions caused substantial damage to the Russian economy but the ruble withstood the immense pressure amid the growing demand for commodities and petroleum products.

The near-term fundamental outlook for a ruble looks bullish as oil & gas exports have contributed to $321 billion in revenue for 2021-2022. Consequently, the USD/RUB is expected to remain neutral or move slightly down. The ruble is currently trading well below the major psychological resistance level at $90 mark and is well supported on the daily chart.

EUR/USD – Euro US Dollar

Euro extended its decline for the third consecutive session on Monday after several reports confirmed the atrocities committed by Russian forces in the town of Bucha. The European Union governments are expected to impose fresh sanctions against Russia in response to these barbaric atrocities. The euro has already performed under pressure in the last 2 months amid the economic damage from the war in Ukraine and any imports ban will further erode its demand.

Meanwhile, the economic data report from the eurozone showed that consumer inflation is at a fresh high of 7.5% in March due to the expensive energy prices and agricultural commodities. The EUR/USD is down by over 0.4% and testing the next immediate support level at the 1.1000 mark. The RSI indicator is in the bearish zone and if the bearish momentum picks up speed, the 1.1000 mark could become the resistance.

GBP/USD – British Pound US Dollar

The British pound has started experiencing renewed bearish pressure as the United States and its allies are discussing a fresh set of sanctions in the response to a potential war crime committed by Russian forces near Kyiv. This has boosted the demand for the U.S. dollar and renewed its appeal as a safe-haven asset while undermining risk-sensitive assets like the British pound.

The better-than-expected U.S. jobs data also induced some selling pressure in GBP/USD. The relative strength index indicator is making lower highs and lower lows on the daily chart, signaling a selling interest. Therefore, one must look for potential selling opportunities in GBP/USD in the near term.

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