Ahead of U.S Session USD Stable

Today all the focus is on the U.S session as they will release employment and growth data that will help the greenback either gain strength in the market or lose it as it is currently stable. Expectations show that the economy will expand as a result of the stimulus plan positively affecting the economy as consumers spent more towards the economy while inflationary pressure eases.

The Euro Zone released its CPI flash estimate for the year ending in July coming in at 4.1% inline with expectations yet slightly higher than the prior reading of 4.0%. Although the release of this data helped the euro gain strength in the market but on the other hand it is bad news for the economy. The single currency since the beginning of this session has been rising as this raised anticipations that the ECB will be pressured to hike rates supporting the appreciation. The trading range for the euro is between the major support of 1.5580 and the resistance of 1.5670 at 1.5617. The EUR/USD recorded a high of 1.5639 and a low of 1.9779.

The UK economy is still under stress as the house prices continue to fall taking down pressuring the pound from breaking the resistance of 1.9820 and if it does its next target will be 1.9870. We see a strong support at 1.9780 if it breaches this point it will continue to the downside hitting the next support of 1.9695. The GBP/USD is currently trading at 1.9819 while recording a high of 1.9833 and a low of 1.9779.

Currently seen in the markets we are seeing carry trades as investors sell low yielding currencies and buy higher yielding currencies. A victim to this is the yen as for the USD/JPY we see a strong resistance at 108.30 while a support at 107.80. The pair is trading at 108.18 while recording a high 108.23 and a low of 107.76.

Crown Forex

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