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Thursday, August 20th
USD/CHF suffered considerable losses amid FOMC minutes not giving any clear indications on the rate hike timing. This morning, the frank was also supported by the positive Trade Balance figure from Switzerland. The pair fell below 0.97 level to its lowest since August 1 and having found support near 0.9637, rebounded to 0.9660.
EUR/USD surged on Wednesday as dollar came under renewed pressure amid lower than expected Core CPI reading and the report on crude oil inventories also indicated some lack in demand. European Current Account, on the other side, was better than expected coming out with 25.4B reading versus the forecast of 19.2B. The FOMC minutes showed, according to most officials, the conditions for policy firming had not yet been achieved, but it was noted that the conditions were approaching that point. Currently, EUR/USD is trading at 1.1127 heading up to 1.1187, where the pair is likely to find resistance. The support level is located at 1.1042.
NZD/USD might be finally moving up after a major three-month free fall. Despite downturn in New Zealand employment and falling commodity prices, the Kiwis managed to reach much higher than expected Global Dairy Trade price index, as well as better than expected quarterly PPI. In the beginning of August, we saw a 2.8% rise in hourly earnings. In the last month, the 0.6500 level proved to be a reliable support, so with the current quote of 0.6621, the pair might test the 0.6652 level.
GBP/USD has been testing the strong resistance level at 1.5690 for the last four sessions and it is highly expected that today’s block of news from Britain will finally take the pair higher starting a bullish trend after prolonged consolidation between 1.5690 and 1.5466. Today, the market is watching Retail Sales data as well as CBI Industrial Trends orders figures from the UK.
Ahead in the day, Canadian wholesale sales numbers will be known, which will be followed by existing home sales and Philadelphia Fed manufacturing index from the US.
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