Daily FX Wrap: USD index still trying to recover, but EUR/USD hit short lived. Commodity currencies still eyeing higher

Another day of mixed trade, with confusing signals suggesting a GBP top in Cable, but support coming in from EUR based selling which hit EUR/GBP to fresh 3 week lows.  The key data release this morning was the UK jobs report, which showed a rise in jobless claims as well as a small than expected rising in average earnings.  Cable was hit down into the mid 1.4300’s, but support was quick to emerge to set up a fresh test on 1.4400.  Strong resistance here from 1.4425 upwards, but no major sell to note here as yet.  The latest ICM polls favouring the vote to remain in the EU tempered the soft data read.

 The USD index continues to threaten a recovery, but late in the day we saw North American players quick to hit the greenback again.  Existing home sales in the US were better than expected, but to no avail.  EUR/USD support ahead of 1.1300 largely behind this, with the commodity currencies refusing to give up on the topside.  USD/CAD threatened a reversal through 1.2700, but late in the day we were back at the lows.  AUD/USD managed to claw out fresh lows to .7828, but along with NZD through .7000, is looking stretched at these higher levels.  USD/JPY continues to trade in no-man’s land, fails to react to USD sentiment or risk.  The BoJ next week may added fresh support, and a retest into the low 108.00’s seems to carry little favour at present.