EUR/USD eased to $1.1477 following the ECB interest rate decision and accompanying statement, but then surged during the press conference, after President Draghi signalled the bank would discuss language on bond purchases in the autumn. The single currency rose to a fresh 14-month high against the US Dollar, before extending gains to its highest level since August 2015 at $1.1655, as more political headwinds for the US weighed on the Greenback, stemming from reports that Special Counsel Mueller is to looking at investigating President Trump’s business transactions. In terms of technicals, today’s high at $1.1655 may offer some resistance ahead of the August 24th 2015 high at $1.1711. On the downside, Tuesday’s low at $1.1470 may offer some support before Monday’s low at $1.1433.
GBP/USD softened throughout the day despite some better than expected retail sales figures where all metrics came in above analysts’ estimates. However, one piece of data doesn’t make an economy and with Brexit concerns at the forefront of investors’ minds, the pair fell to a fresh weekly low at $1.2930. The EUR/GBP cross also climbed to its highest level in more than 8-months at £0.8970 after the ECB, hurting the overall market interest for Cable. From a technical view, today’s low at $1.2930 may offer some support before last Thursday’s low at $1.2875 while on the upside, yesterday’s high at $1.3052 and Tuesday’s high at $1.3125 are in focus.
USD/JPY continued its post-BOJ rally to session highs at ¥112.42 during the European session. However, more political headwinds for the US, stemming from reports that Special Counsel Mueller is to looking at investigating President Trump’s business transactions, saw the pair turn sharply to the downside and move below yesterday’s lows at ¥111.56. Losses were short lived however and the pair rebounded from 3-week lows to trade back into positive territory around ¥112.00. The recovery took place amid reversal in the bond market, as US yields pared losses after a sloppy 10-year TIPS auction result. In terms of technicals, we look for resistance at Tuesday’s high of ¥112.70 and Monday’s high at ¥112.86. On the downside, today’s low at ¥111.46 and the June 26th low at ¥111.10 are in focus.
GBP/EUR plunged today as the shared currency rose sharply across the board fuelled by ECB President Draghi’s press conference in which he signalled that the bank would discuss language on bond purchases in the autumn. Brexit concerns also remained at the forefront of investors’ minds and comments out of UK Trade Minister Fox provided an air of caution after he stated that the UK could survive without a deal. Better than expected UK retail sales figures where all metrics came in above analysts’ estimates, did little to stop the pairs reaching 8-month lows at €1.1136. Below here, we look for support at the November 9th low of €1.1078 followed by the November 2nd low at €1.1048. On the upside, today’s high at €1.1320 and Tuesday’s high at €1.1386 are in focus.