EUR USD
EUR/USD gained 16 points to trade at 1.2955 as traders continued to interpret the ECB moves and its assistance to the Eurozone economy. There is virtually no Eurozone or US data today so trader are looking for reasons to trade. Last week’s August payrolls report brought a major disappointment with employment growth slowing to 142 000.
EUR/USD remains neutral for the moment. Some more consolidation would be seen above 1.2859 temporary low. But upside of recovery should be limited by 1.3159 resistance and bring fall resumption. Below 1.2859 will extend recent fall to 1.2755 key support level.
GBP/USD
The GBP rose 0.62% against the USD and closed at 1.6208, after the BoE Governor, Mark Carney, testified at the August Inflation Report Hearings, that the UK is moving towards a rate hike.
Yesterday, the BoE’s Monetary Policy Committee member, David miles, stated that he expects more slack in the UK labour market and further indicated that there is less immediate need for a rise in interest rates.
Earlier today, the RICS house price balance in the UK dropped to 40% in August, against anticipations that the house price balance to fall to 47%.
The pair is expected to find support at 1.6088, and a fall through could take it to the next support level of 1.5981. The pair is expected to find its first resistance at 1.6267, and a rise through could take it to the next resistance level of 1.6339.
USD JPY
The USD strengthened 0.59% against the JPY and closed at 106.83.
The BSI of large manufacturing industries in Japan registered a rise of 12.7%
The pair is expected to find support at 106.35, and a fall through could take it to the next support level of 105.96. The pair is expected to find its first resistance at 107.02, and a rise through could take it to the next resistance level of 107.29.
Going forward, investors look forward to the release of Japan’s industrial production data, scheduled tomorrow.
USD CHF
The USD rose 0.38% against the CHF and closed at 0.9365.
The pair is expected to find support at 0.9324, and a fall through could take it to the next support level of 0.9282. The pair is expected to find its first resistance at 0.9403, and a rise through could take it to the next resistance level of 0.9440.