On Tuesday, the EUR/USD pair finally broke down of its 3-day-old trading range and dropped to a near 2-week low level of 1.2254 amid resurgent US Dollar demand. The selling pressure abated during the Asian session on Wednesday, with the pair bouncing back to 1.2285-90 support turned resistance as the focus now shifts back to the economic fundamentals. Investors today will confront the preliminary release of latest Euro-zone consumer inflation figures, which is expected to show reviving inflation…
matibea's Blog
GBP /USD
"UK Data showed slightly better than expected momentum in the manufacturing sector in Mar, with the PMI index holding at 55.1, little changed form 55.0 in Feb but better than the slight deceleration to 54.7 expected.""Sterling seasonality is positive in Apr, reflecting the typical decline in the USD that grips the markets around this time of the year as well as UK-centric factors such as financial inflows at the start of the financial year. ""The GBP’s relatively strong performance in Q1 may sof…
EUR/USD
From a technical perspective, the pair remains confined within a broader trading range held since mid-January and hence, it would be prudent to wait for a clear breakthrough before positioning for any meaningful trajectory. Meanwhile, the 1.2285 area now seems to have emerged as an immediate support, which if broken is likely to accelerate the slide towards 1.2240 horizontal support before the pair eventually heads towards testing the 2-1/2-month-old trading range support near the 1.2200-1.2180 …
Attention turns back to data this week
Asian equities kicked off Q2 on a positive note, taking their cue from Wall Street’s rally on Thursday. The gains came despite China imposing retaliatory tariffs on U.S. imports and Manufacturing PMI data falling short of economists’ forecasts.So far China’s response has only been on the aluminum and steel tariffs, announced by the White House last month, and not on the proposed $60 billion in annual tariffs against Chinese products. This shows Beijing is unwilling to enter a trade war with the …
USD/CHF
The pair fell to its lowest level since the U.S. election day at 0.9654 in the wake of dismal nonfarm payroll report. As of writing, the pair is trading at 0.9670, down 0.45% on the day.
In a matter of minutes, the pair lost more than 50 pips as the total nonfarm employment in the U.S. increased by 138,000 in May, missing the market consensus of 185,000.
In a matter of minutes, the pair lost more than 50 pips as the total nonfarm employment in the U.S. increased by 138,000 in May, missing the market consensus of 185,000.
GBP/USD
GBP/USD levels to considerAs of writing the pair is losing 0.06% at 1.2875 facing the immediate support at 1.2770 (low May 31) followed by 1.2758 (low Apr.21) and then 1.2738 (55-day sma). On the flip side, a breakout of 1.2918 (20-day sma) would aim for 1.2921 (high May 31) and finally 1.2949 (high May 26).
USD/JPY
Spot has now recovered over 100-pips from a two-week low touched on Wednesday as bulls finally got a respite for yesterday's blowout ADP report, which might have raised expectations for Friday's official jobs data. Also collaborating to the strong bid tone was a modest improvement in the ISM manufacturing PMI for May, which negated a jump in the US initial weekly jobless claims to five-week highs.
EUR/USD
European PMIs surpassed expectations, exception made by Italian one, albeit they were not enough to boost the EUR: the common currency trades stuck around 1.3500 against the greenback, barely 20 pips away from this year low. Ahead of US opening, the bearish tone prevails in the pair, with the hourly chart showing price pressuring a flat 20 SMA and indicators heading south around their midlines. In the 4 hours chart indicators aim slightly higher in oversold levels, albeit price action does littl…
Don't be surprised if EUR/USD sleeps through Friday
After another day of few upsetting items on the block, the weekly range for EUR/USD looks to be even narrower than what was predicted in the Insider. This morning – 7 hours into trading - we have seen a 9 pips range.
The French budget balance is pretty dreadful readings but the November release later this morning is likely not noticed despite having seen a 700 bln deficit being accumulated over the last 12 months. President Hollande earlier in the week warned about more cuts in public spending b…
The French budget balance is pretty dreadful readings but the November release later this morning is likely not noticed despite having seen a 700 bln deficit being accumulated over the last 12 months. President Hollande earlier in the week warned about more cuts in public spending b…