EUR/USD fell in early European trade, reaching today’s low of $1.1098 after the weak UK construction PMI figure. Buyers soon emerged however and the pair was back to unchanged on the day before European equity markets closed. We have since continued to grind higher, approaching Friday’s weekly high of $1.1169 ahead of the intraday recovery high from 24th June at $1.1189. On the downside, today’s low of $1.1098 may offer some support ahead of Friday’s low of $1.1072.
After gaining in Asia overnight, GBP/USD weakened in Europe on the lowest UK construction PMI print since 2009 to today’s low of $1.3241. The pair then recovered in the European afternoon session and saw a spike higher amid thin trading conditions to today’s high of $1.3341 before slipping back below the $1.33 mark. We may find some resistance at today’s high of $1.3341 ahead of last week’s high of $1.3566. We look for support at Thursdays low of $1.3206 ahead of the multi-decade Brexit low of $1.3121.
USD/JPY has spent most of the European session paring its overnight gains. After reaching today high of ¥102.80 late in the Asian session, we saw a steady ebb back towards Friday closing level of ¥102.51, eventually falling into negative territory after European stocks closed for the day. We look for resistance at today’s high of ¥102.80 ahead of last week’s high of ¥103.39. On the downside, Friday/todays lows of ¥102.44/102.43 and last Wednesday’s low of ¥102.18 are on focus.
After rallying in Asia overnight, GBP/EUR strengthen further reaching the European morning high of €1.1970 ahead of the UK construction PMI figure. However, after the weakest reading since 2009, Sterling weakened, eventually taking GBP/EUR down to €1.1906 at around Midday. The pair did recover ahead of the European closing bell and then spiked higher to €1.1972 alongside the pop in Cable that most have attributed to thin trading conditions. We have since eased back to the lower end of the day’s range. We look for support at the overnight multi-year low of €1.1894 before looking to the December 17th (2013) low of €1.1811. On the upside, resistance may come in at today’s high of €1.1972 and Friday’s high of €1.2020.