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Tuesday, September 29th
EUR/USD rose sharply on Monday as a sell-off among commodities and U.S equities put dollar under pressure. The single currency was trading as low as 1.1147 before subsequently hitting the 1.1248 level. The dollar fell considerably on Monday in spite of continuing indications from the Fed that it will raise the interest rate at some point in course of the next several months. The US data of Monday showed an increase in personal income by 0.3%. Ahead in the day, the market is expecting a block of news from the euro zone. On the US side, investors are watching CB Consumer Index. The pair might find support at 1.1139, while resistance is located at 1.1354.
GBP/USD was having a volatile session on Monday amid the comments from BoE and fluctuations of the dollar. The pair opened trades at 1.5184, and then rose as high as 1.5241, subsequently falling to 1.5171. It is expected that the cable will end this week at 1.50 or just below in case NFP data will provide some solid ground for the Fed to start looking at raising interest rates next month while BoE continues to provide controversial indications from its several members. Today’s data from UK includes M4 money supply, Mortgage approvals and net lending to individuals. The key support and resistance levels to watch today are 1.5047 and 1.5284, respectively.
USD/CAD broke through the 1.34 handle this morning despite weaker greenback. The pair is currently continuing its bullish trend changing hands at 1.3410. Ahead in the day, data is expected from Canada including RMPI and IPPI. Technically, the loonie seems to be heading to 1.3520 level, which might be reached as soon as the end of this week with plenty of economic data. The support is seen at 1.3387.
The yen was stronger in Asia on safe heaven demand in a light data day regionally. USD/JPY was presented with an opportunity to fall as the dollar was considerably weaker in view of stock market sell-off and mixed US data of Monday. The pair is currently trading at 119.30 and expectations are mostly bullish as Japanese currency is now out of its comfortable 120 area. Tomorrow, Japan publishes its economic data on Industrial Production, Construction orders and Housing Starts. The support and resistance levels are located at 118.74 and 120.87, respectively.
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