Forex Morning Briefing
$DXY, $EUR, $JPY, $GBP, $AUD, $CNY
Commentary: USD Under Pressure. PE
EUR (Euro) at 1.1792 rose strongly past 1.1745 and The US Dollar (.DXY) Index at 93.82 broke below t support at 94.25-20.
The rise in EUR, and the fall in .DXY occurred despite the US PPI rising 0.4% (M-M), higher than the market expectation of 0.1%. It was perhaps triggered by Q-3 German GDP coming in at 3.3%, higher than expectations of 2.4%.
Note: European Q-3 GDP marked 2.5% (Y-Y), compared to the last US GDPreading of 2.95%.
The big picture: perhaps the fall from 1.2092 to 1.1555 in EUR was corrective, and we now have to think of sideways trade within 1.1850-1500 over the next weeks.
USD/JPY at 113.20 has come down on the weakness in .DXY. If the expected support at 113.00 fails to produce a bounce, we may have to consider chances of a fall to 112.00.
EUR/JPY at 133.85 is up sharply by the rise in EUR, instead of the anticipated rise in USD/JPY. Need to see if resistance at 134 holds or not in here.
Sterling (GBP) at 1.3136 moved up a little in line with expectation within 1.30-32.
AUD (Aussie) at 0.7588 remains above support at 0.7600, so the chances of a move to 0.77 are still valid.
USD/CNY at 6.6331 is trading sideways as expected, setting up to rise past 6.65