Forex Blog by Greg Secker

Some dealers expect the yen to continue benefiting for the rest of the week amid growing concern that any more pullback in equities could be a further drag on a global economic recovery. JPY/USD is currently bouncing around the 92.65 mark. Release of stronger than forecast Australian GDP data provided a boost for risk, the recovery in Aussie-yen lifting euro-yen and in turn allowed euro-dollar to edge back above USD1.42 to retest earlier opening highs. Further demand extended the recovery to USD1.4227, with rate currently holding around USD1.4213. EUR/USD has ticked a little higher, presently at 1.4240 in fairly slow trade. The move comes with S&P futures putting on a few points. The EURO tumbled from 1.4379 to as low as 1.4177 yesterday due to active cross selling in euro on the selloff in global stock markets. Sterling is currently down from today’s open. Cable has slipped marginally lower in early trade, presently hovering around the 1.6128 level.

 

Due for release today there are the Euro-Zone GDP, Euro Zone Household Consumption, USD ADP Employment Change, USD Factory Orders.

By Greg Secker

Sterling moves higher as UK traders return from their extended weekend break with the currency moving up to 1.6340. At present it is currently bouncing around the 1.6331 level. The pair is having a resistance at 1.6325 along with a support at 1.6245. If the pair broke the resistance we may see it trading in the 1.4345 levels. The British PMI manufacturing may help the pair to gain further today especially with the optimistic forecasts of a higher reading, and momentum indicators on the daily scale are supporting the uptrend. The Euro gained against the dollar, currently up this morning around the 1.4362 level. Today the pair is having a resistance at 1.4380 along with a support at 1.4320. However, the euro zone’s unemployment rate will be released today which could affect the pair’s trading. Finally, the dollar yen pair is up this morning at 93.24.

 

Due for release today there are the GBP Mortgage Approvals, GBP Net Consumer Credit, GBP Net Lending Sec, GBP – PMI, Euro Zone Unemployment Rate, USD ISM Manufacturing, USD Pending Home Sales and USD Construction Spending.