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Currency Feed – New York Close Report – Wednesday 9th August

Centtrip

EUR/USD $1.1757 (+$0.0008)

EUR/USD is little changed ahead of the Wall Street close having pared an earlier decline. The pair fell to its lowest level since July 28th earlier this afternoon as the US Dollar rallied across the board with analysts struggling to identify a clear catalyst. Losses proved short lived and the pair bounced back with multi-week lows for US government bond yields weighing on the Greenback. There was no immediate reaction to US data releases with Q2 unit labor costs softer than expected at +0.6% (f/c. +1.1%), non-farm productivity beating at +0.9% (f/c. +0.7%), and wholesale inventories revised up to +0.7% from +0.6%. From a technical view, yesterday’s high at $1.1824 may offer some resistance before last Thursday’s high at $1.1892. On the downside, today’s low at $1.1687 and the July 27th low at $1.1648 are in focus.

GBP/USD $1.3006 (+$0.0017)

GBP/USD is a touch higher ahead of the Wall Street close with the pair struggling for firm direction this afternoon. The pair hit a daily high of $1.3028 in Europe this morning but was pulled back to flat during the afternoon session as the Dollar saw a broad bid, albeit a short lived one. There was no immediate reaction to US data releases with Q2 unit labor costs softer than expected at +0.6% (f/c. +1.1%), non-farm productivity beating at +0.9% (f/c. +0.7%), and wholesale inventories revised up to +0.7% from +0.6%. In terms of support, yesterday’s low at $1.2950 and the July 20th low at $1.2930 are in focus while on the upside we look for Monday’s high at $1.3060 and Thursday’s low at $1.3110.

USD/JPY ¥109.79 (-¥0.51)

USD/JPY fell to a fresh eight-week low this afternoon at ¥109.53. The pair has been dragged lower by broad gains in the Yen with the Japanese currency benefiting from safe-haven demand as tensions between the US and North Korea continue to escalate. We did see a brief bounced back above 110 this afternoon amid a broad Dollar rally but this failed to last. There was no immediate reaction to US data releases with Q2 unit labour costs softer than expected at +0.6% (f/c. +1.1%), non-farm productivity beating at +0.9% (f/c. +0.7%), and wholesale inventories revised up to +0.7% from +0.6%. From a technical view, yesterday’s low at ¥110.22 may offer some resistance before , today’s high at ¥110.37 and Monday’s high at ¥110.91. Beyond today’s low, we look for support at the June 15th low of ¥109.25 and June 14th low at ¥108.81.

GBP/EUR €1.1060 (+€0.0008)

GBP/EUR is posting a minor gain ahead of the Wall Street close with the pair looking to consolidate after falling to a fresh 10-month low yesterday. Fresh impulses for both the Euro and Sterling were limited today; French business sentiment and Italian industrial production both beat forecasts but prompted minimal reaction.  From a technical view, yesterday’s low at €1.1039 may offer support before the October 13th 2016 low at €1.1025. on the upside Friday’s high at €1.1114 may provide some resistance ahead of Thursday’s high at €1.1203.

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