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Friday, June 30th
The EUR/USD pair broke out of its consolidation phase to the downside in early Europe, stepping away from the region of its 14-month highs, marked yesterday at 1.1445 level. Seems that investors prefer to take some profits off the table especially after pair's recent increase for more than 250-pips over the past three trading sessions, which was triggered by hawkish remarks of the ECB President M.Draghi. Moreover, the greenback has stalled its decline against its main competitors at the end of this week that is also collaborating with pair’s recent brief decline. Now all traders’ attention remains glued to German unemployment data, which will be able to bring some trading opportunities for market participants during European trading hours, while the US docket will keep silence at the end of this week, so the market will continue to digest recent talks of the Chief ECB Banker.
The GBP/USD pair stepped away from its monthly highs this morning, posted at 1.3030 mark in Asia, as UK bulls have taken a breather ahead of UK data. The pair stalled its 4-day upside rally, underpinned by surprisingly hawkish talks of the BOE Governor M.Carney, as traders remain cautious, locking in previous profits ahead of UK GDP prints. Adding to this, minor attempts of the greenback against its major competitors are also collaborating with pair’s brief retreat this morning. Now immediate focus shifts towards UK fundamentals, while the bloc of US minor data releases will keep investors busy during NY trading hours.
The AUD/USD pair has eased part of its recent gains, retreating from its 3-month highs, posted earlier during this trading session at 0.7712 spot on the back of broad profit-taking actions. Today, the weakness of the greenback is still one of the main drivers on the market, which keeps the pair in the green zone, despite yesterday’s better-than-expected US GDP prints. Adding to this, green numbers of Chinese manufacturing and non-manufacturing activities, coupled with prevailing positive tone of commodity assets, especially of copper and iron ores, are also supporting the pair at the end of this week. Looking ahead, today the economic calendar for the pair will remain relatively silent, as the US docket will provide markets with only secondary data reports, so the USD dynamics will continue to drive the pair throughout this trading session.
The USD/JPY pair again came under pressure during the Asian session on Friday and continued to deviate from its monthly highs, located in the region of 113.00. However, the pair managed to keep its positions above the level of 112.00, as returned risk-of tone, triggered by upbeat Chinese data, has eased bearish pressure on the pair. Meanwhile, seems that the market largely ignored the bloc of mixed data from Japan, although it helped to slow down the drop of the pair in early Asia. On the data front, today the US will release only secondary data reports, which will have limited impact on the pair, so broad market trend will determine next steps of USD/JPY in the day ahead.
The main events of the day:
UK GDP – 11.30 (GMT +3)
Prelim. EU CPI – 12.00 (GMT +3)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.1348 R. 1.1490
USDJPY S. 111.17 R. 113.41
GBPUSD S. 1.2889 R. 1.3067
USDCHF S. 0.9527 R. 0.9615
AUDUSD S. 0.7615 R. 0.7719
NZDUSD S. 0.7245 R. 0.7359
USDCAD S. 1.2953 R. 1.3067
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