EUROPEAN STOCKS STEADY EVEN AS GERMAN BUSINESS CONFIDENCE SINKS

The British pound retreated slightly after the relatively weak UK retail sales numbers. According to the Office of National Statistics (ONS), the country’s retail sales declined by 0.3% in February leading to a year-on-year increase of 7.0%. The two were weaker than the median estimate of 0.6% and 7.6%, respectively. Meanwhile, core retail sales dropped to -0.7% and by 4.6% on a year-on-year basis. This performance was attributed to the rising cost of inflation. Data published on Wednesday showed that the country’s price index rose to a 3-decade high of 5.9%.

European stocks rose on Friday as investors watched the meetings among American and European leaders. Joe Biden committed to continue supporting Ukraine to defend itself by arming its military. Still, there are concerns about the bloc’s economy as data showed that business confidence plummeted in March. The monthly index of business confidence declined to 90.8, the lowest level since January last year. Some of the biggest concerns among businesses in the region are about the rising cost of doing business as inflation jumps. There are also worries about the BA.2 Omicron variant that is spreading in some parts of Europe.

Cryptocurrency prices rallied on Friday as demand from investors rose. Bitcoin rose to $44,000 while Ethereum added over 100 points to the current $3,150. According to CoinGecko, the total market cap of all coins rose to over $2.1 trillion. Analysts believe that the crisis in Ukraine and the sanctions applied by governments will lead to more demand for Bitcoin. Another catalyst is the ongoing deal-making in the cryptocurrencies industry. This week, venture capital firms invested $450 million in Yuga Labs, the creator of Bored Ape Yacht Club. Also, Crypto.com will be an official sponsor of FIFA.

ETHUSD

The ETHUSD pair has been in a strong bullish trend in the past few days. It rose above the key resistance level at 3,056, which was the highest level in February. It has moved above the 25-day and 50-day moving average while the Relative Strength Index and MACD kept rising. Therefore, the pair will likely keep rising in the coming days. If this happens, the next key resistance level to watch will be at 3,100.

USDCHF

The USDCHF pair declined to the lowest level since March 9th. It has moved below the 25-day moving average and is below the lower side of the Bollinger Bands. The MACD has moved below the neutral line while the Relative Strength Index (RSI) has dropped. It has also moved below the 61.8% Fibonacci retracement level. Therefore, the pair will likely keep falling after the SNB decision.

EURUSD

The EURUSD pair moved sideways even as the German business confidence declined. The pair is trading at 1.1012, where it has been in the past few days. The 25-day and 50-day moving averages have flattened while the Relative Strength Index (RSI) has moved to the neutral level. The pair has formed a head and shoulders pattern. Therefore, the pair will likely have a bearish breakout in the coming weeks.