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Currency Feed – New York Close Report – Thursday 23rd March

EUR/USD – Current Price $1.0782 (-$0.0013)

EUR/USD is nursing minor losses ahead of the Wall Street close with investors on tenterhooks ahead of the House vote on Trump’s healthcare bill. Signals from Washington have been mixed and it remains to be seen whether the vote will definitely take place today, and if so, whether it will pass. US data releases were mixed and failed to prompt much reaction in the US Dollar – initial jobless claims ticked up to 258K (f/c. 240K) from 243K and new home sales beat at 0.592 Mln (f/c. 0.565 Mln). A modest downtick in Euro Zone consumer confidence was also largely ignored. Of note, Barclays did revised their EUR/USD forecast today and now it see it falling to $1.0300 by year instead of $0.9900. From a technical view, the earlier high at $1.0804 may offer some resistance ahead of yesterday’s high at $1.0825. On the downside, at Tuesday’s low at $1.0717 and the march 16th low at $1.0704 are in focus.

GBP/USD – Current Price $1.2513 (+$0.0031)

After a fairly subdued start to the day, GBP/USD rocketed higher this morning after UK retail sales surprised to the upside. The pair has maintained the earlier bid through the European close and extended to a fresh daily high of $1.2530 in recent trade. Investors are now awaiting the outcome of the US House vote on the healthcare bill although there are doubts it will even take place today. US data releases were mixed and failed to prompt much reaction in the US Dollar – initial jobless claims ticked up to 258K (f/c. 240K) from 243K and new home sales beat at 0.592 Mln (f/c. 0.565 Mln). Of note, Deutsche Bank warned today that they see a further devaluation in Cable post-Brexit to $1.0600 by year end. From a technical view, the February 23rd high at $1.2570 may offer resistance ahead of the February 9th high at $1.2582. On the downside, the earlier low at $1.2459 and yesterday’s low at $1.2421 are in focus.

USD/JPY – Current Price ¥111.05 (-¥0.09)

USD/JPY is little changed ahead of the Wall Street close. The recent safe have bid into the Japanese Yen appeared to run out of steam today as US and European equity markets posted gains. The Dollar meanwhile appears to be waiting for the outcome of the US House vote on the healthcare bill although there are doubts it will even take place today. US data releases were mixed and failed to prompt much reaction in the US Dollar – initial jobless claims ticked up to 258K (f/c. 240K) from 243K and new home sales beat at 0.592 Mln (f/c. 0.565 Mln). From a technical view, the earlier low at ¥110.60 may offer some support ahead of ahead of the November 22nd low at ¥110.23. On the upside, the earlier high at ¥111.57 and yesterday’s high at ¥111.79 are in focus.

GBP/EUR – Current Price €1.1602 (+€0.0043)

GBP/EUR is higher ahead of the Wall Street close. The pair saw a sharp jump earlier this morning after UK retail sales surprised to the upside – reaching a daily high of €1.1620. Of note, Deutsche Bank have warned that they see a further 15% devaluation in the pair post-Brexit and possibly see the pound reaching parity with the Euro. From a technical view, the March 2nd/February 17th lows at €1.1638/36 may offer some resistance ahead of March 2nd high at €1.1698. On the downside, yesterday’s low at €1.1551 and Tuesday’s low at €1.1492 are in focus.

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