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Currency Feed – New York Close Report – Thursday 10th August

Centtrip_Currency Feed

EUR/USD $1.1755 (-$0.0002)

EUR/USD is little changed ahead of the Wall Street close after paring an earlier decline. The pair got down to a daily low of $1.1702 in Europe this morning but found some support during the afternoon as the US Dollar softened on weak US macro releases. Headline PPI slowed to +1.9% (f/c. +2.2%) from +2.0% and core PPI to +1.8% (f/c. +2.1%) from +1.9%, US jobless claims also rose last week from 244K (f/c. 240K) from 241K. Lower US government bonds yields will also have weighed on the Greenback this afternoon as safe-haven trades lifted US Treasuries above yesterday’s peaks. From a technical view, yesterday’s low at $1.1687 and the July 27th low at $1.1648 may offer support while on the upside we look for today’s high at $1.1769 and Tuesday’s high at $1.1824.

GBP/USD $1.2978 (-$0.0026)

GBP/USD is lower ahead of the Wall Street close. The pair hit today’s low at $1.2950 during the European morning session but did bounce back above $1.30 by midday after UK industrial production surprised to the upside. Dollar weakness also helped the pair recover back to flat after soft PPI and jobless claims figures from the States. In recent trade, the pair has slipped back below $1.30. Beyond today’s low, we look for support at Tuesday’s low at $1.2950 and the July 20th low at $1.2930. On the upside, we look for resistance at Monday’s high at $1.3060 and Thursday’s low at $1.3110.

USD/JPY ¥109.24 (-¥0.82)

USD/JPY fell to a fresh eight-week low this afternoon at ¥109.18 weighed by a stronger Yen as rising geopolitical tension continue to push investors into perceived safe-haven assets. The Dollar meanwhile, which had been stronger during the Asian/European crossover, also succumb to selling pressure this afternoon which helped the pair lower. This followed weaker prints for US PPI and jobless claims. Beyond today’s low, we look for support at the June 14th low of ¥108.81 followed by the April 20th low at ¥108.69. On the upside, yesterday’s low at ¥109.53 may offer some minor resistance before today’s high at ¥110.18.

GBP/EUR €1.1034 (-€0.0027)

GBP/EUR is lower ahead of the Wall Street close. The pair had been higher earlier in the day after rallying to a daily peak of €1.1100 not long after UK industrial production surprised to the upside and boosted the pound. Losses occurred during the afternoon session as risk sentiment soured and perceived safe haven assets received a boost and the expense of riskier assets such as Sterling. Beyond today’s low, we look for support at Tuesday’s low at €1.1039 and the October 13th 2016 low at €1.1025. On the upside, today’s high at €1.1100 and Friday’s high at €1.1114 are in focus.

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