News analisis

Sterling is not coming off - BBH

Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman said there is no keeping sterling down.

Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman said there is no keeping sterlingdown.

Key Quotes

“The new high in the Nationwide house price index and a stronger than expected construction PMI have helped sterling extend its gains against both the dollar and euro."

"Sterling tested the $1.70 level on Monday and, with the help of today's data, pushed closer to $1.7180. For its part, the euro has slipped below last month's low and is now at its lowest level against sterling since September 2012."

US stocks flat, Europe ends mixed

Wall Street is rising modestly on Wednesday after better-than-expected US employment data. European markets finished little changed. Among currencies the US dollar is among the best performers.

Wall Street is rising modestly on Wednesday after better-than-expected US employment data. European markets finished little changed. Among currencies the US dollar is among the best performers.

The Europe Stoxx 600 was up 0.323% on Wednesday while amog country indexes, the UK FTSE 100 finished with a gain of 0.19%, the Germany's Dax 30 edged up 0.09%. The France’s Cac 40 lost 0.21%. In the US , the Dow Jones was up 0.07% still below the 17,000 mark, while the S&P 500 was rising a modest 0.03%.

Federal Reserve Chairwoman, Janet Yellen mentioned that the Fed’s policy rate needs to focus primarily in employment . She added that monetary policy faces limitations when its used as a tool to promote financial stability.

Employment data from the US ahead of Thursday's Non-Farm Payroll surpassed expectations. According to ADP the private sector added 281.000 jobs in June, above the 200.000 analysts expected. On the negative side, factory orders dropped 0.5% in May.

The USD gained momentum in the currency market after economic reports. The Pound is the best performer among European currencies. Gold was trading at $1,330/oz up 0.30% for the day while crude oil was falling less than 1%, with the barrel at $104.50.

EUR/USD below its 200 DMA again

EUR/USD is trading at 1.3652, down -0.20% on the day, having posted a daily high at 1.3683 and low at 1.3642.

EUR/USD is trading at 1.3652, down -0.20% on the day, having posted a daily high at 1.3683 and low at 1.3642.

OB/OS Index is reflecting neutral hourly conditions after a considerable drop post the best ADP survey we have seen in almost 2 years.
EUR/USD is noteworthy here as it is back below its 200 DMA once again. Currently RSI is at 42.97, up from the last hourly print at 34.12, with ADX at 11.64, down from its previous close at 17.83.

EUR/USD Levels

Current price is 1.3652, with resistance ahead at 1.3655 (Hourly 100 SMA), 1.3660 (Daily Classic S2), 1.3667 (Hourly 20 EMA), 1.3670 (Daily Classic S1) and 1.3674 (Daily 200 SMA). Next support to the downside can be found at 1.3645 (Daily Classic S3), 1.3642 (Daily Low), 1.3631 (Hourly 200 SMA), 1.3627 (Daily 20 SMA) and 1.3625 (Weekly Classic PP).

1.0589 to offer strong support - TD Securities

Shaun Osbourne, Chief FX Strategist at TD Securities sights opportunities to rebuild on USD/CAD.

Shaun Osbourne, Chief FX Strategist at TD Securities sights opportunities to rebuild on USD/CAD.

Key Quotes

"Beyond today, speculative positioning as depicted by the CFTC Commitments of Traders report last week has become more neutral, after sizeable short covering of late. Given that the fundamentals have not shifted in CAD's favor, we think, current levels for the cross would offer opportunities to rebuild CAD shorts. As such, key support at 1.0589 – the low thus far for the year recorded on Jan 2nd – will likely prove a psychological barrier for USD/CAD."

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