EUR / USD
The EUR declined 0.43% against the USD and closed at 1.2898, as the Sentix investor confidence in the Euro-region deteriorated in September.
Yesterday, the ECB Executive Board Member, Sabine Lautenschlager, supported the recent decision of the ECB to cut its key interest rate, stating that it was necessary to prevent the risks of too low inflation and boost economic growth in the common currency bloc.
Separately, the IMF Chief, Christine Lagarde, suggested that the weakening of the Euro against the USD in the past few days is a positive sign for “recovery” in the single-currency bloc.
In the US, consumer credit climbed by $26.0 billion in July, higher than market expectations for a rise of $17.0 billion and compared to $18.8 billion in the previous month.
The pair is expected to find support at 1.2853, and a fall through could take it to the next support level of 1.2824. The pair is expected to find its first resistance at 1.2934, and a rise through could take it to the next resistance level of 1.2986.
Amid a light economic calendar in the Euro-zone as well as in the US, trading trends in the pair today would be determined by global news.
GBP/USD
The GBP fell 0.73% against the USD and closed at 1.6095, as house prices in the UK rose less than expected in August, raising concerns over the health of the housing market in the nation.
Economic data released this morning indicated that like-for-like retail sales in the UK rebounded sharply, increasing 1.3%, on an annual basis in August, higher than market expectations for a rise of 0.3% and compared to a 0.3% fall recorded in the previous month.
The pair is expected to find support at 1.6029, and a fall through could take it to the next support level of 1.5977. The pair is expected to find its first resistance at 1.6180, and a rise through could take it to the next resistance level of 1.6279.
Trading trends in the Pound today would be determined by the UK’s industrial and manufacturing data, scheduled for release in a few hours. Meanwhile, investors would keep a close eye on the BoE Governor, Mark Carney’s speech, as well as the NIESR’s crucial GDP estimate for the UK, scheduled later today.
USD/JPY
The USD strengthened 0.75% against the JPY and closed at 106.00.
Earlier today, the minutes of the BoJ’s latest monetary policy held in August indicated that policymakers are optimistic about Japan’s economic recovery and expect inflation to rise gradually.
The pair is expected to find support at 105.4, and a fall through could take it to the next support level of 104.57. The pair is expected to find its first resistance at 106.67, and a rise through could take it to the next resistance level of 107.12.
Trading trends in the Yen today would be determined by Japan’s consumer confidence index as well as machine tool orders data, scheduled shortly.
USD CHF
The USD rose 0.45% against the CHF and closed at 0.9353. The Swiss Franc came under pressure, after retail sales in Switzerland fell unexpectedly at an annualized rate of 0.6% in July.
Meanwhile, the seasonally adjusted Swiss unemployment rate rose 3.2% in August, in line with market expectations. It follows a similar increase registered in the previous month.
The pair is expected to find support at 0.9329, and a fall through could take it to the next support level of 0.9289. The pair is expected to find its first resistance at 0.939, and a rise through could take it to the next resistance level of 0.9411.