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UFXBank Forex Outlook: Euro Moves Up on Positive Employment Data

Written by UFXBank Research Team
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USD Dollar (USD) – The dollar gained against most of the majors in Forex Trading, despite better than expected macro data in U.S. as the Initial Jobless Claims came out 453k better than expected 457k. The GDP came out 1.7% better than expected 1.6%. The Chicago PMI came out 60.4 better than expected 56. The Stock Markets closed negative with Dow Jones falling -0.44% and the NASDAQ decreasing by -0.33%. Crude Oil jumped another day nearly at 80$ a barrel. Gold (XAU) touched another fresh high record level at 1316$ but closed at 1308$ an ounce. Today, many important macro data will come out starting with the Core PCE Price Index that expected unchanged at 0.1%. The Personal Spending is expected at 0.3% vs. 0.4% previously. The Michigan Consumer Sentiment Index is expected at 67.1 vs. 66.6 previously. The ISM Manufacturing Index is expected at 54.5 vs. 56.3 previously.

EURO (EUR) – The Euro made small gains versus the dollar as it reached another fresh high after The German Unemployment Change came out -40k better than expected -20k and the CPI came out unchanged at 1.8% as expected. Breaching the resistance level of 1.3680 might push the pair higher. Overall, EUR/USD traded with a low of 1.3558 and with a high of 1.3682. Today, The Manufacturing PMI is expected unchanged at 53.6. The Unemployment Rate is expected unchanged at 10%.

EUR/USD – Last: 1.3655

Resistance

1.3680

Support

1.3620

1.3565

1.3500

British Pound (GBP) – The Pound tumbled after it reached fresh high levels above 1.59 but failed to sustain and broke down falling below 1.57 levels. The Nationwide HPI came out 0.1% better than expected -0.2%. Trading above the 1.5680 support level might rebound the pair back to 1.58 areas. Overall, GBP/USD traded with a low of 1.5667 and with a high of 1.5921. Today, The Manufacturing PMI is expected at 53.9 vs. 54.3 previously.

GBP/USD - Last: 1.5740

Resistance

1.5780

1.5880

1.5920

Support

1.5680

1.5600


Japanese Yen (JPY) – The USD/JPY pair attempted to reach the 83 low levels but seems like investors hold it above and the pair back to 83.5 unchanged levels. The Tokyo Core CPI came out -1% unchanged as expected. The USD/JPY has broken the support level that it had at 84.20 levels therefore the momentum is negative again for the dollar. Overall, USD/JPY traded with a low of 83.15 and with a high of 83.80. No economic data is expected today.

USD/JPY-Last: 83.45

Resistance

84.00

84.65


Support

83.35

82.90

Canadian dollar (CAD) – Canada's dollar gained against the U.S. dollar as the pair fluctuated in a range it capped for two weeks between the 1.0220 support level to 1.0340 resistance level. The GDP came out -0.1% unchanged as expected. Range trading is expected further unless the pair will finally break the bounds. Overall, USD/CAD traded with a low of 1.0229 and with a high of 1.0343. No economic data is expected today.

USD/CAD - Last: 1.0298

Resistance

1.0360

1.0460

Support

1.0220