EUR/USD surpassed the Asian high in Europe this morning, reaching today’s peak of $1.1149. The pair remained positive on the day heading into the afternoon session but was soon on the back foot amid strong Dollar demand on some better than expected macro releases – first retail sales and CPI, followed by industrial production, Michigan sentiment and business inventories. The sell-off continued until $1.1072 before we found some support although the pair did slip to today’s low of $1.1053 after the European close. Beyond today’s low, we look for support at Wednesday’s low of $1.1042 followed by last Friday’s low of $1.1002. On the upside, yesterday’s high of $1.1165 and the July 5th high of $1.1185.
It has been another large daily range in Cable of almost 350 pips. After rising in Asia overnight, the pair eased back towards unchanged after some fairly dovish, although hardly unsurprising comments, from BoE Chief Economist Haldane. The move lower continued in the afternoon amid broad based Dollar strength following some better macro releases. We reached today’s low of $1.3132 after the European close although have been attempting to reclaim the $1.32 handle in recent trade. Support comes in at yesterday’s low of $1.3106 ahead of the July 6th 31-year low at $1.2798. On the upside, today’s high of $1.3481 and the June 26th high of $1.3566 are in focus
After rallying to today’s high at ¥106.32 in Asia overnight, USD/JPY retreated ahead of the European open to just above ¥105.40. The pair picked up as the session wore on in the ¥105.60-106.20 range for most of the morning. Heading into the afternoon, the Dollar strength observed in other pairs amid the stronger US data failed to push the pair to new session extremes. However, USD/JPY did begin to wilt later in the afternoon as US equities slipped negative, slipping to ¥105.22, above the overnight low of ¥105.05. Above today’s high, we look for resistance at ¥106.84. On the downside, the overnight low of ¥105.05 and Wednesday’s low of ¥103.91 are in focus.
GBP/EUR approached the European open close to the overnight high of €1.2104. However the pair retreated back towards the €1.20 mark amid dovish comments from BoE Chief Economist Haldane, before spending most of the afternoon switching handles between €1.19 & €1.20. The pair then slipped to today’s low after the European open as risk sentiment soured and US stocks turned negative, reaching today’s low of €1.1881, before bouncing back above €1.19. Support comes in at yesterday’s low of €1.1808. On the upside, today’s high of €1.2104 and the June 29th high of €1.2186 are in focus.