USD trading was mostly order driven yesterday. Investors still pondered the balance between ample monetary and fiscal stimulus and the risk of a second wave of corona infections. The USD slightly outperformed even as sentiment remained constructive, building on Tuesday’s rebound after strong US retail sales. The TW dollar regained the 97 big figure, but the upside momentum eased later. EUR/USD traded heavy for most of the day but closed at 1.1244, off the intraday low. USD/JPY initially held a tight sideways range in the lower half of the 107 big figure, but slipped to the 107 area as US equity momentum faded going into the close.
This morning, sentiment on Asian markets remains cautious as investors monitor how China handles the new virus outbreak in Beijing. The PBOC indicated that it expects credit flow this year at least rising 30 trillion yuan, supporting the recovery. The yuan strengthened this morning (USD/CNH currently near 7.065). Job losses in Australia in May (decline in employment of 228 000) were much bigger than expected. AUD/USD dropped about half a big figure upon the release, but most of the decline was soon reversed with AUD/USD again trading in the 0.6875 area, underscoring recent resilience of the Australian currency.
There are again few data in Europe today. The Norges Bank and the Swiss National Bank hold policy meetings. Investors will also look out for political quotes on the EU rescue fund at the start of the 2-day summit. An agreement is not expected yet, but the tone of the comments might have some impact on the euro. In the US, weekly jobless claims and the Philly Fed business outlook will be published. On Tuesday, the dollar gained on better than expected US retail sales. However, we expect any USD reaction to the data today to be more guarded. The USD probably will again trade more in line with global risk sentiment. Last week, the three week-long EUR/USD rally fell prey to profit taking. The EUR/USD momentum eased, but first important support in the 1.1160 area stays out of reach. We expect that area to hold and gradually look for a bottoming out process after the recent EUR/USD ‘correction’.
EUR/GBP drifted further below the 0.90 handle yesterday, at least partially driven by overall euro softness. Today, the Bank of England is expected to ease policy further by raising the APP bond purchases by at least £100 bn. The tone of the BoE assessment probably will remain soft. If so, it EUR/GBP might return back to the 0.90 area
EUR/USD: consolidation pattern. 1.1160 support stays out of reach
Reprinted from yahoo ActionForex, the copyright all reserved by the original author. #EUR/USD# #EUR/GBP# #AUD/USD# #USD/JPY#
คำชี้แจง (Disclaimer) : เนื้อหาข้างต้นเป็นเพียงมุมมองของผู้เขียนแต่เพียงผู้เดียว และไม่ได้แสดงหรือสะท้อนถึงจุดยืนอย่างเป็นทางการของ Followme แต่อย่างใด Followme ไม่รับผิดชอบต่อความถูกต้อง ความครบถ้วน หรือความน่าเชื่อถือของข้อมูลที่ปรากฏ และจะไม่รับผิดชอบต่อการดำเนินการใด ๆ ที่เกิดขึ้นจากเนื้อหานั้น เว้นแต่จะมีการระบุไว้เป็นลายลักษณ์อักษรอย่างชัดเจน
เขียนข้อความของคุณตอนนี้