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UFXBank Forex Outlook: Pound Rises on PMI Info

Written by UFXBank Research Team
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USD Dollar (USD) – The Dollar traded mixed against the major currencies in Forex trading. The market will be unpredictable this week and we will see big movements at times, in very short periods, because we are still waiting for the FED meeting, the interest rate this decision, and the nonfarm pay rolls on Friday. The ISM Manufacturing Index came out at 56.90, better than the expected 53.60. The Stock Markets in the U.S. closed mixed with the Dow Jones rising 0.06% and the NASDAQ falling -0.10%. Crude Oil advanced by 1.9% against the dollar and closed at $82.95 a barrel. Gold (XAU) fell by 0.5% and closed at $1340 an ounce. Today, the Washington Post Consumer Confidence report is expected.

Euro (EUR) – The Euro weakened against the green back today after the ISM manufacturing Index came out at 56.90, better than the expected 53.60. Holding above the support level of 1.3930 keeps the momentum positive for the pair, and if the pair crosses the major resistance at 1.4004, it might reach the 1.4400 level in the next few days. Overall, EUR/USD traded with a low of 1.3864 and with a high of 1.4011. Today, German Manufacturing is expected unchanged at 56.10 and the Manufacturing PMI is also expected unchanged at 54.10.

EUR/USD – Last: 1.3933

Resistance

1.3990

1.4077


Support

1.3876

1.3808

British Pound (GBP) – The Pound gained against the dollar and was trading around the 1.6050 resistance level .The Manufacturing PMI came out at 54.90, better than the expected 53.00. Holding the rate above 1.6050 will keep the momentum bullish for the pound. Overall, GBP/USD traded with a low of 1.5989 and with a high of 1.6089. Today, the Construction PMI is expected at 53.00 vs. 53.80 previously.

GBP/USD - Last: 1.6061

Resistance

1.6088


Support

1.6044

1.5963

1.5885

Japanese Yen (JPY) – The Japanese Yen fell against the Dollar with the opening of the market early today in Asia.  The Monetary Base came out at 6.40%, better than the expected 5.60%. Trading above 80.50 will keep the momentum bullish for the Dollar. Overall, USD/JPY traded with a low of 80.33 and with a high of 81.43. No economic data is expected today.

USD/JPY-Last: 80.56

Resistance

80.68

81.06

81.34

Support

80.27



Canadian dollar (CAD) Canada’s dollar rose against the US Dollar  for a two week high, as the greenback is oversold before the meeting of the Fed this week. Trading below 1.0150 will keep the momentum bearish for the pair. Overall, USD/CAD traded with a low of 1.0125 and with a high of 1.0197. Today, no economic data is expected.

USD/CAD - Last: 1.0111

Resistance

1.0165

1.0204

1.0249

Support

1.0000