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Forex: EUR/USD inching higher towards 1.3200

FXstreet.com (Barcelona) - The bloc currency is attempting to break above the key resistance at 1.3200 on Wednesday, propped up by the increasing risk appetite ahead of the FOMC gathering due this evening.

In the meantime, the greenback, measured by the US Dollar Index, is printing fresh weekly lows. According to Jane Foley, Strategist at Rabobank, “Insofar as the market has built up heavy USD long positions there is risk that the USD correction still has a long way to go. That said, clearly a lot of risk lies with the tone of US economic data”.

The pair is now up 0.18% at 1.3192 with the next resistance at 1.3202 (high Apr.160 ahead of 1.3226 (50% of Feb-Apr slide) and then 1.3230 (daily cloud top).
On the flip side, a breakdown of 1.3120 (hourly high Apr.30) would open the door to 1.3050 (MA21d) and finally 1.2988 (low Apr.25).

Forex Flash: Australia with softer PMI and housing prices, pressure on consumer spending – TD Securities

Soft second-tier data in Australia today: “The manufacturing PMI declined 7.7pts to 36.7, lowest in three years, as the high AUD continue to put pressure on manufacturers. House prices declined –0.5% in April (following +2.8% over Q1), but as the data is not seasonally adjusted, we prefer to look at the y/y measure, which rose from 2.4% to 2.7% y/y”, wrote TD Securities analyst Alvin Pontoh, expecting near term downside pressure for consumer spending after the confirmation that the Government plans to announce an increase in the Medicare levy in the upcoming Budget to fund the new disability insurance scheme.
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Forex Flash: Euro area ‘systemic risks’ in check - Goldman Sachs

Goldman Sachs analysts note that German Bunds have rallied strongly on concerns related to the political landscape in Italy immediately following the general elections, as well as developments in Cyprus, Slovenia and Portugal, and mounting expectations of an ECB rate cut following evidence that the weakness in growth has spread to Germany.
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