EURUSD
The EUR rose 0.13% against the USD and closed at 1.3151, following report about a possible cease-fire agreement between Russia and Ukraine. The service sector in Germany, Euro-zone’s biggest economy, further worsened , falling to 54.9 in August.
the services PMI in the Euro-zone dropped to 53.1 in August, down from a reading of 53.5 in July.
In the US, the new orders for factory goods jumped in July, pointing further signs of strength in the manufacturing sector. The factory orders rose 10.5% in July, marking its biggest one-month increase since 1992, following a 1.5% increase in the previous month.
Separately, the Fed, in its Beige Book survey, indicated that the US economy continued to expand at a “moderate to modest” pace over the summer, as all twelve Federal Reserve regions continued to expand.
The pair is expected to find support at 1.3126, and a fall through could take it to the next support level of 1.3104. The pair is expected to find its first resistance at 1.3165, and a rise through could take it to the next resistance level of 1.3182.
Trading trends in the Euro today would be determined by the much crucial interest rate decision by the ECB, scheduled later today. Meanwhile, investors would also keep a close eye on German factory orders, French unemployment rate and initial jobless claims data from the US, set for release in a few hours.
GBP USD
The GBP traded tad lower against the USD and closed at 1.6463.
The service sector activity in the UK expanded at the fastest pace in 10 months in August, pointing to a continued strong recovery in the sector. The services PMI in the nation jumped to 60.5 in August, from a reading of 59.1 registered in the previous month. Markets had expected the index to decline to 58.5.
The pair is expected to find support at 1.6432, and a fall through could take it to the next support level of 1.6406. The pair is expected to find its first resistance at 1.6491, and a rise through could take it to the next resistance level of 1.6524.
Trading trends in the Pound today are expected to be determined by the BoE’s crucial interest rate decision, scheduled later today.
USDJPY
The USD weakened 0.27% against the JPY and closed at 104.84.
This morning, the Bank of Japan (BoJ), kept its upbeat view about the nation’s economy, though it admitted that the effects of the April sales tax hike still prevails.
The pair is expected to find support at 104.63, and a fall through could take it to the next support level of 104.39. The pair is expected to find its first resistance at 105.23, and a rise through could take it to the next resistance level of 105.58.
Going forward, investors would keep a close on the BoJ’s monthly survey as well as the leading economic and coincident indices data, scheduled to release tomorrow.
USDCHF
The USD declined 0.16% against the CHF and closed at 0.9176.
The pair is expected to find support at 0.9167, and a fall through could take it to the next support level of 0.9157. The pair is expected to find its first resistance at 0.9195, and a rise through could take it to the next resistance level of 0.9213.
Amid lack of economic releases from Switzerland today, market participants would await Q2 Swiss industrial production, slated to release tomorrow.