Forex Morning Briefing
$DXY, $EUR, $GBP, $JPY, $AUD
Commentary: US GDP Friday may come in stronger than expected, may not. PE
US Dollar (.DXY) Index at 94.694 tested support Thursday near 94.08 and then bounced as the ECB continued its Dovish stance. The US GDP release Friday is expected to show sharp acceleration in GDP in Q-2. If that happens, we may see .DXY test 95.3-95.5. Then higher soon.
EUR (Euro) at 1.1650 weakened, after testing resistance at 1.174 Thursday, then fell to 1.164. It could test support 1.16 now. If US GDP comes out stronger than expected, EUR may fall below 1.16, then to 1.145.
USD/JPY at 110.98 marked a low a 110.6 Thursday and has risen a bit. The supports at 110.5 and 110.0 may restrict pair’s down-move. Next week’s Bank of Japan meeting could change it, as if the BoJ decides to bring in even slight tightening to its loose monetary policy, then it might lead to strength in the JPY, then a break below 110 would happen. Expect no tightening from BoJ.
EUR/JPY at 129.31 broke support at 129.4, next target is 129.2. If it closes below 129.30-20 Friday, the Bearish to 128-127 next week.
Sterling (GBP) 1.3106 dipped from resistance 1.32, if GBP closes below 1.3127 today, then see 1.29 next week. The Bearish trend is expected to continue now.
Have a terrific weekend
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