MARKET DEVELOPMENT – USD Back on the Throne, EUR Drops, GBP Bounces Off Support
EUR: A reality check for the Euro, which came back under pressure after Eurozone PMI’s (Mfg. in particular) fell short of estimates. In reaction the Euro drop to lows of 1.1250, which in turn keeps the currency within its recent range. The apparent green shoots from Asia have yet to stem through into the Euro-Area, thus keeping EURUSD offered.
AUD: Main highlight overnight had been the Australian jobs report, which to the RBA’s delight, provided a set of robust figures. Consequently, AUDUSD drifted higher, however, yet again the 0.7200 capped further upside, which in turn saw the pair drift back towards 0.7150.
GBP: Despite better than expected retail sales across the board, the initial bid in GBP was subsequently pared amid the broad strength in the USD index. 1.3000 area continues to keep GBPUSD supported and thus confine the pair to a relatively tight range.
Source: Thomson Reuters, DailyFX
DailyFX Economic Calendar: – North American Releases
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WHAT’S DRIVING MARKETS TODAY
- “Charts in Focus – EURUSD Bear-flag, GBPUSD Wedge” by Paul Robinson, Currency Strategist
- “US Dollar Grabs a Bid, EURUSD Price Cracks After Subdued PMI Data” by Nick Cawley, Market Analyst
- “NZDUSD, AUDUSD, Crude Oil Technical Setups for Next Week” by Justin McQueen, Market Analyst
- “EURUSD Outlook: Strength Ebbs as PMIs Point to Flat Eurozone Economy” by Martin Essex, MSTA , Analyst and Editor
- “Using FX To Effectively Trade Global Market Themes at IG” by Tyler Yell, CMT , Forex Trading Instructor
--- Written by Justin McQueen, Market Analyst
To contact Justin, email him at Justin.mcqueen@ig.com
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