Despite FED reaffirming its strategy that is in no rush to raise interest rates the U.S. Dollar hovered near 10-month highs against a basket of currencies, mainly due to upbeat gross domestic product suggesting that U.S. economy grew by 4% on annualized figure.
The Euro was not helped by German inflation figures earlier yesterday showing that consumer price index grew by 0.8% as expected. EUR/USD broke through its first support level of 1.34 and it traded quickly down to 1.3366 ahead of the FED’s policy rate decision. The pair recovered towards the end of yesterday’s trading session and is now trading just below 1.34. The pair is concentrating most of traders’ interest with Euro-zone inflation and unemployment figures due today and U.S. Non Farm Payrolls due tomorrow.
The risk is continuing to be skewed towards the upside for the USD/JPY pair, as it traded near 3-month highs at 103.09 during yesterday’s session. The pair retreated this morning at 102.82 consolidating just above early June’s high.
The U.S. Dollar reiterated its strength against the market’s recent favour, the Sterling Pound. The GBP/USD pair traded for 11th consecutive day lower. The GBP is has lost in just two weeks 1.82% down from 1.7195 on July 15th to yesterday’s low at 1.6888. Next support level on the daily chart can be found down to May’s 2014 high at 1.6845.
The USD/CAD cleared yesterday the last resistance level at 1.0858 and is now looking to challenge 1.0950 and 1.10 thereafter. Canadian GDP figures are due later today at 12:30 GMT. Data this morning kicks off with German Unemployment rate at 07:55 GMT and Euro-Zone CPIs at 09:00 GMT.
Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.
U.S. Dollar remains bullish ahead of Non Farm Payrolls
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