Forex.ee: Daily economic news digest

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Wednesday, July 8th

USD/JPY is broadly lower after positive data from Japan contributed to the strengthening of yen. The Japanese adjusted current account was 1.64T as opposed to 1.38T expected. The current account n.s.a. in May was 1.881T exceeding the expectations by 0.339T. The bank lending rose 2.5% in June – a slight dip from 2.6% in May. The yen is below 122.00 at 121.53.

EUR/USD was heading down in Asia, but later spiked up to 1.1024. Greece has just five days to submit a full package of reforms to its creditors, otherwise opposing bankruptcy. The next Eurogroup meeting is arranged for Saturday.

The U.S. dollar index was up 0.05% at 96.93.

USD/CAD is still moving up after yesterday’s volatile trade in the late afternoon amid trade balance data from U.S. and Canada. The American trade deficit widened less than expected, while Canadian data was much worse with 3.34B trade deficit against expectations of 2.50B. The pair is quoted at 1.2747.

NZD/USD is still in the red colour at 0.6645 while AUD/USD was considerably lower at 0.7383.

GBP/USD is also on the bearish trend after yesterday’s weak Manufacturing Production data despite Halifax Price index beating expectations. The cable is quoted at 1.5412 with support and resistance level located at 1.5263 and 1.5537, respectively.

Ahead in the day, investors are viewing the Canadian Building permits, and FOMC Meeting Minutes.

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Thursday, July 9th

AUD/USD broadly higher after positive reports on the Employment change. The unemployment rate in Australia also did not reach the expected level and additional support was offered by Chinese CPI data. The pair is traded at 0.7465 with support levels at 0.7320, 0.7338 and 0.7357. The resistance level is at 0.7483.

NZD/USD rebound to above 0.67 currently quoted at 0.6730 after positive news from New Zealand’s top trade partner China. The pair was on a strong bullish trend in the last three weeks, so the current correction is somewhat a vulnerable move. Further losses are expected ahead for the Kiwi.

GBP/USD was erasing yesterday’s losses ticking up to 1.5420 earlier in Asia. Ahead in the day, BoE will decide on the interest rate, which is expected to stay at the current level of 0.50%. At the moment, the cable is quoted at 1.5384 against the greenback.

USD/JPY was much stronger after the sharp fall of yesterday, although, Japanese data was positive with Core Machinery orders (YoY) reading at 19.3% - higher than expected. The ongoing correction might signify the beginning of a more or less consolidated trade as the recent highs of the pair were considered negative for the yen by the BoJ.

EUR/USD hit one-week highs of 1.1124 amid Greeks requesting a new three-year bailout. The pair’s fluctuation continues to lack confidence as markets are getting ready for the next developments in Greece. The market price is 1.1034.

Ahead in the day, we will monitor the Canadian Housing Starts and series of reports from the U.S.

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Friday, July 10th

EUR/USD opened today’s trade at 1.1034 and was headed up since then. Yesterday, Greece presented a signed copy of the awaited fiscal reform plan to its western creditors agreeing to cut spending by some €13 billion. In exchange, the Mediterranean state will receive approximately €50 billion. Prime Minister Alexis Tsipras is going to Brussels over the weekend for finalizing the deal. Meanwhile, the U.S. Department of Labor reported that the number of people filing for initial jobless benefits increased by 15,000 to 297,000 instead of falling by 7,000, as expected, which slightly weakened the greenback. The pair is quoted at 1.1088.

The yen was weaker amid Corporate Goods Price Index falling 0.2% and Household Confidence reading slightly lower than expected in June. The yen extended losses for the second consecutive day after a sharp fall of USD/JPY in the beginning of the week. The pair is currently traded at 121.88 with support and resistance levels at 120.90 and 122.64, respectively.

AUD/USD was higher today supported by the normalization of situation in Chinese markets. The Shanghai Composite index rose 3% at the open. Home Loans dropped 6.1% in May and the Invest Housing Finance also reading also contracted by 3.2%. The aussie is quoted at 0.7465.

NZD/USD continues the correction after three weeks of sliding down. Without any reports coming out today from New Zealand it is well possible that the current fragile move will be affected by the evening speech of Fed Chair J. Yellen. Meanwhile, the pair is comfortably located above 0.6757.

USD/CAD is close to the strong resistance level located at 1.2833 – the highs of March. The possibility of rebound is very high, bearing in mind that the loonie was weakening for over three weeks now. The series of news are coming out from Canada with Employment change and unemployment rate at the focus of investors’ attention. The pair is changing hands at 1.2698.

GBP/USD is erasing the recent losses ahead of the Trade Balance report. It is still unclear if the cable sell-off is coming to an end with British economy showing mostly positive data and the ongoing downfall of the pound lacking fundamental foundation. GBP/USD is at 1.5413.

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Monday, July 13th

The euro was weaker in Asia this morning amid Greece receiving a worse than expected offer from its western creditors. The negotiations that were supposed to be the final seem to be prolonged as Greece’s plan of reforms was rejected on Sunday. Ahead in the day, investors are viewing the Eurogroup meeting and U.S. Federal budget Balance. EUR/USD is currently climbing back near its Friday levels quoted at 1.1127.

NZD/USD is higher today after a sharp fall on Friday amid considerable strengthening of the U.S. dollar. The Food Price Index came out slightly higher than expected at 0.5% with expectations of 0.4%. The Kiwi is traded at 0.6707 with support and resistance levels at 0.6629 and 0.6751, respectively. Ahead in the week, New Zealand CPI reading is expected.

In the meantime, the Australian dollar opened lower today at 0.7412. AUD/USD was not supported by the Chinese trade balance data not meeting the expectations of experts. The pair is trading flat at 0.7420.

GBP/USD is rebounding after falling for the two consecutive weeks. With British CPI, Unemployment rate and Average Earnings index due later in the week, sterling may be well supported by the positive economy data. The current market price is 1.5543.

USD/CAD seems to be reversing after almost hitting the March highs of 1.2833. This might be the beginning of a bearish trend formation, especially if this week’s Canadian data provides good reasons for the loonie to strengthen. Core CPI and Interest rate decision are to be published this week. USD/CAD is at 1.2719.

USD/JPY has fully recovered after last week’s losses changing hands at 123.22. The Japanese data was weaker today as Tertiary Industry Activity Index and Capacity Utilization were lower than expected. This might signify the beginning of a more or less consolidated trade for this pair.

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Tuesday, July 14th

AUD/USD was rebounding this morning as NAB’s June Business Confidence and Business Conditions survey showed readings of +10 and +11, respectively, which were higher than +8 and +6 in May. NAB chief economist Alan Oster said that the forecasts suggest no more rate cuts from RBA and even a possible rate hike in 2016. The pair is at 0.7423.

The U.S. dollar index, which measures the greenback’s strength against the basket of major currencies, rose 0.23% to 97.16. The rise of the dollar is stipulated by the expectations of a rate hike. The interest for the U.S. currency was even more stirred up by the comments from Fed Chair J. Yellen last week.

NZD slips lower against stronger greenback hitting the lows of 0.6666 earlier today. The continuation of a downfall might be at questions as Greece agreement supports the demand for riskier assets. NZD/USD is changing hands at 0.6681.

EUR/USD is lower as the prospectus of a potential bailout for Greece eased concerns over a possible Grexit and prompted investors to refocus on the economic weakness in Euro zone. The single currency is trading at 1.1001 against the American dollar.

Ahead in the day, investors are viewing the U.S. retail sales, German ZEW Current Conditions and Industrial Production in EZ.

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Wednesday, July 15th

AUD/USD is up for the second consecutive day trading at 0.7460. New Motor Vehicle sales were up 3.8% after previous reading of -6.9%. The aussie was greatly supported by the Chinese GDP data coming out higher than expected.

NZD/USD was headed up as weaker retail data from U.S. weakened the greenback, but today’s move was all the way down through the 0.67 level. Tomorrow, the New Zealand CPI is out, which will give further indications of how weak the Kiwi is and if the bearish trend is going to continue for long. NZD/USD is currently at 0.6692.

On the other hand, GBP/USD rallied supported by lower retail sales in the U.S. and hawkish comments from Band of England officials. The cable traders now look for the average earnings in the UK. The market price of GBP is $1.5662.

EUR/USD is changing hands at 1.1015 after yesterday’s EZ ZEW Economic Sentiment and Industrial Production data were lower than expected. The market is looking forward to the Fed Chair J. Yellen’s speech in the evening.

USD/CAD is up this morning ahead of Interest rate decision later in the day. The loonie was constantly getting weaker for over two months in a row, almost reaching the March highs of 1.2833.

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Thursday, July 16th

AUD/USD falls amid yesterday strong U.S. PPI data and investors looking ahead to the timing of a likely rate hike. The pair is down to 0.7370. The support and resistance levels are located at 0.7262 and 0.7435, respectively.

USD/CAD was much higher breaking through the 1.2833resistance level (the highs of March) trading close to the much stronger historical resistance level of 1.3063 (highs of March 2009). The loonie eased as the U.S. PPI sent the pair higher, right before the BoC reported the lowering of interest rate to 0.50%. Ahead in the day the investors will be watching the Foreign Securities Purchases data from Canada. The pair is quoted at 1.2940 with immediate resistance level at 1.2944.

NZD/USD is lower today as country’s CPI missed the expectations. The pair broke through the strong support level of 0.6560 (the lows of May 2010) currently trading at 0.6526. This indicates that bearish trend is steadily continuing with target of 0.6443.

EUR/USD slipped lower to 1.0903. As the potential of Greece exiting from euro zone is diminishing, the focus is now on today’s data from Europe including the CPI and interest rate decision. Higher volatility is expected in the middle of the day as Fed Chair J. Yellen is to speak right after the Philadelphia Fed Manufacturing Index publication.

GBP/USD didn’t change much in course of yesterday’s trade, but the daily graph suggests the bullish power is somewhat exhausted in the medium term presenting potential for the further fall. BoE Governor M. Carney is to speak this evening. The cable is trading at 1.5627.

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Friday, July 17th

Yesterday, EUR/USD fell, despite the weakening of the dollar caused by lower reading of the Philadelphia Fed Manufacturing Index. Although, the greenback remained supported by the speech of J. Yellen. The interest rate in Europe was kept unchanged at record lows and European Central Bank increased its emergency lending to Greek banks by €900 million. The pair is trading at 1.0884.

GBP/USD is broadly higher today, gaining 0.38% to reach the 1.5664 level.

USD/JPY is down after yesterday’s rise. The pair is trading at 123.97 with closest support and resistance levels at 123.63 and 124.42, respectively.

AUD/USD was higher this morning, reaching the 0.7417 level, then returning close to yesterday’s closing price of 0.7402. The Australian Conference Board Leading index was higher than the previous reading of -0.3%.

NZD/USD is moving up after sharp losses of the two previous days when Kiwi lost almost two hundred pips. The current market price is 0.6531.

Ahead in the day, investors are viewing the U.S. Building Permits and Core CPI from U.S. and Canada.

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EUR/USD is trading at 1.0850 in the early European session. The low was around 1.0820 after Gold printed a low of 1087$/Oz. There are no significant data releases later in the day, the main focus is kept on Greece debt issues.

GBP/USD is trading in the flat mode today, current quote is 1.5607. The support is on the 1.5550 level, resistance at 1.5638. No major economic data is due to be released today, so we expect the sideways moves of GBP/USD today.

USD/JPY is testing 124.10 level trading within a narrow range. The pair has had the best performance during the last week posting a gain of 150 pips. Now it consolidates around 124.00 level and traders may expect further gains in case of positive tone in US dollar and absence of concerns in Greek deal. The immediate resistance is at 124.25 and support around 123.39.

AUD/USD reached it’s low of 0.7327 earlier today been influenced by the collapse in Gold prices. At the moment we see a recovery of the Aussie with current price at 0.7392. Resistance level is at 0.7415, support at 0.7343.

NZD/USD was pushed up today to 0.6600 level by the New Zealand PM John Key’s comment that Kiwi has fallen faster than expected. Currently the price trades at 0.6569 level. The main focus this week is on the RBNZ police meeting on Thursday and interest rate decision. Resistance is at 0.6575 level with support at 0.6535.

[B]
Your European ECN-broker,

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[harissi]

Can i have some specific information regarding the EUR/USD pair i see that there will be a lot of volatility comming these days so if i can have the resistance and support and a specific strategy that would be great .

[jasperdelaney]

EUR/USD: Supported as Greek fears decline EUR/USD has been more resilient this week due to ease in Greek fears. EUR/GBP remains preferred for trading the Euro, according to Wood****. He further believes the single currency has been data-responsive this week - See more at: Forex Strategy: USD/JPY bear trap? GBP/USD to struggle ahead after Carney “guidance" - Tip TV
Moving to EUR/USD he notes that spot is holding up well and there have been bear traps that promptly snap back swiftly. Looking at an upward trendline dating back to March 2015, Mir believes that traders should be looking to target the 50D MA around 1.1155. While still feeling that in the long run there is downward pressure on the market and the downside will resume, at present, he doesn’t see a bearish picture. - See more at: EUR/USD to break lower, but not just yet, S&P 500 to break out soon? - Tip TV

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Monday, August 3rd

USD/CAD was rising this morning after breaking through the important 1.3063 resistance level last Friday. The market is closely watching the current movement of this instrument as this week’s Canadian economic data and expected GDP report are likely to give a start to a new long-term trend. Consolidation of prices above 1.3063 would be a reliable signal for opening long positions. Today is a national holiday in Canada.

NZD/USD is down this morning reaching the 0.6586 level after last week’s volatile trade. The Kiwi, like other commodity currencies, is not doing really well sliding close to lows of May 2010 - 0.6560. In the meantime, there is clearly a lack of bullish power so the expectations are on the downside.

AUD/USD held weaker in Asia despite upbeat manufacturing survey. Today’s move was stipulated by Chinese manufacturing PMI data coming out lower than expected. The current market price is $0.7297.

The movements of GBP/USD are mostly driven by EUR/GBP at the moment, so mid-term expectations are mostly bearish with expectations of EUR showing some growth against the US dollar. GBP/USD is at 1.5633 continuing the consolidated trade of the previous weeks.

EUR/USD is slightly higher today. Previously, the market was driven by the idea of parity with the greenback, but since the establishment of strong support levels at 1.04 and 1.08 it is now clear that the single currency will be headed forward after periods of consolidated trade. However, some fundamental reasons will be required for the EUR to tick up above 1.13 in long term. The current quote is 1.0982.

British and American Manufacturing PMI reading are expected later in the day.

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Tuesday, August 4th

AUD/USD is rebounding amid data showing trade balance deficit widened less than expected and retail sales also beating the expectations. RBA kept the interest rates unchanged citing low commodity prices forcing aussie to adjust accordingly. The pair is trading at 0.7376.

USD/CAD stays above the key resistance level 1.3063, which was passed last week. The question is whether the current move is another bull trap or the beginning of a new uptrend. This is likely to become clear after series of news from Canada this week including trade balance, employment change, building permits and Ivey PMI. The current quote is 1.3130.

GBP/USD was falling yesterday despite stronger than expected manufacturing PMI data. Although, the cable climbed back above 1.5600 this morning. On the daily graph, a considerable price consolidation can be observed forming a flag figure from July 13. This means that breaking through the resistance level at 1.5693 will give a start to a new bullish trend in mid-term. The forthcoming economic data from UK will likely become the fundamental reason for either supporting this prediction or forming a turnaround. British Construction PMI is out shortly.

NZD climbed up to 0.6584 against softer greenback after US ISM Manufacturing PMI reading didn’t reach the expectations of experts yesterday. The New Zealand Employment Change data is due tomorrow, so the market is waiting for indications of healing economy.

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Wednesday, August 5th

The Australian dollar fell despite strong AIG Services Index and Chinese Caixin Services PMI data coming out higher than expected. This was happening amid strengthening of the dollar after broad rise of US factory orders in June and hawkish comments from Fed, implying coming close to short-term rate hikes. Currently, AUD/USD is at 0.7365, but there are no indications that lows have been reached as of now. Strong psychological support level is at 0.7006 and intraday resistance level at 0.7432.

NZD/USD is down 0.4% after Employment change figure didn’t reach the expectations of 0.5% coming out at 0.3%. The pair is likely to test the 0.6500 support level. The closest resistance level is located at 0.6546 (Today’s Highs) with the next resistance at 0.6560 (March 2010 lows).

The rest of the week will be volatile for GBP/USD as current consolidation of the pair in between 1.5690 and 1.5467 will be developing into a trend. Bearing in mind that recent decline in cable prices did not have any fundamental reasons and was mostly stipulated by technical levels, the expected direction of forthcoming trend is upwards. This week, economic data from Great Britain is expected including Services PMI, Trade Balance and Interest Rate decision. Sterling is changing hands at 1.5583.

EUR/USD is down to 1.0867. Later in the day, retail sales data is due after Euro zone Services PMI came out at 54.00, a little higher than expected. The important levels to watch are 1.0770 for support and 1.0963 for resistance.

USD/CAD was higher testing the 1.3211 level. Canadian Trade Balance data will give the first indication of a developing bullish trend, if negative. The strong support level is now 1.3063.

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Thursday, August 6th

EUR/USD is firm above 1.09. In July, the pair was trading in the corridor between 1.1214 and 1.0810, which means that current quote of 1.0907 indicates a 2.73% decline from the highs of the previous month. Yesterday’s mixed data from US supported the single currency, but the market is likely to keep steady ahead of tomorrow’s crucial data on US labor market. German Factory Orders were significantly higher than expected today, while Retail PMI was at 54.2.

Today is a stress-test day for the cable with series of economic data reports coming out. While the interest rate is highly unlikely to be changed at this point, market is waiting for confirmation of stronger British economy, so the Manufacturing and Industrial Production reports will be closely watched. In the middle of the day BoE MPC minutes will probably add some volatility to the sterling trade, but the overall sentiment remains bullish. GBP/USD is changing hands at 1.5623. The important resistance level to watch is 1.5689, while support is located at 1.5555. EUR/GBP is at 0.6983.

USD/CAD is slightly down today changing hands at 1.3165. Considering current development as a consolidation move, the new support level to watch is close to 1.3106 with stronger support still at 1.3063. Initial jobless claims report from the US due later in the day will be an early indicator of tomorrow’s US labor data.

AUD/USD slips lower after mixed Australian jobs data. The pair already hit 0.7320 level and continues to lower even further, as demand for the dollar is starting to pick up after yesterday’s non-farm private employment did not reach the expected levels. In June, Australian unemployment figure ticket up to 6.3%, while the employment change figure was at 38.5K against the forecast of 10K. The support can be found at 0.7261. Closest resistance is located close to 0.7429.

NZD/USD was trimming yesterday’s losses earlier today after Wednesday mixed data from US. Although, without any significant news coming out from New Zealand, the movements of this pair will be stipulated mostly by tomorrow’s Non-Farm Payrolls data.

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Friday, August 7th

AUD/USD is moving up despite worse than expected home loans data from Australia. With the current market price of aussie at 0.7374 the pair was supported by the positive RBA statement. Downward revision of the growth forecast in Australia for 2015/16 and lowering the unemployment forecast was taken by the market as a bullish sign. It was also said that decline in AUD is expected once the Fed raises rates. The support is located at 0.7254 and resistance at 0.7407.

EUR/USD inched up to 1.0920 extending gains of the previous session, as U.S. Treasury prices surged ahead of today’s Non-Farm Payrolls data. The single currency was relatively flat against the US dollar during the previous month and has remained below 1.10 for the last eight sessions. The pair is likely to gain support at 1.0808 (lows of July 20) and resistance at 1.1114.

USD/CAD will have a volatile session today with important data coming out from both countries. The loonie is still above the key support level of 1.3063, but the market is waiting to see the current consolidation developing into a trend. The direction of this trend will be determined solely by the fundamental data from both countries, so today’s news might as well serve as a catalyst for more active market situation development. Currently, USD/CAD is at 1.3111.

USD/JPY hit the 124.84 level this morning with subsequent consolidation at 124.73. BoJ Governor reiterated that the last quarter’s weakness is not going to continue and inflation will reach 2% by September 2016. The support and resistance levels to watch are 123.79 and 125.17, respectively.

GBP/USD experienced considerable losses yesterday, but remained in the consolidation corridor formed by 1.5683 and 1.5467 levels. The idea of “Super Thursday”, which is criticized by many for the reason of the likelihood of it becoming the British version of US NFP, was intended to give the market more information on British monetary policy decisions simultaneously. Yesterday, the data showed that raising the interest rates in UK is a long-term goal and BoE is intending to closely watch the inflation pace to make a more fundamental-data-based decision.

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Monday, August 10th

NZD/USD drops to 0.6598 after closing above 0.66 on Friday. Ahead in the week, there is a block of news expected from New Zealand including card sales, Business NZ PMI, Food Price Index and the core retail sales data. The downside remains compelling for this pair given the divergence between the Fed and RBNZ. The support and resistance levels to watch are 0.6544 and 0.6687, respectively.

The data from Japan was mixed with adjusted current account reading of 1.30T as opposed to the forecast of 1.41T. Bank Lending was higher than expected, while Household Confidence declined to 40.3 from the previous reading of 41.7. USD/JPY is currently at 124.47. The expectations are mostly bullish for this pair ahead of Japanese data publication on industrial production and series of news from the US including CPI, Retail Sales and FOMC minutes. The first resistance level to watch is 124.68 with the next one located at 124.99. The support can be found at 123.71.

USD/CAD is rising today after volatile trade on Friday. The pair remains above the key support level formed by the highs of March 2009 - 1.3063, which might indicate further strengthening of the dollar against the loonie. The market is expecting to see Canadian data on Housing starts, New Housing Price Index and Manufacturing sales.

GBP/USD keeps declining after the stress imposed by “Super Thursday” and “Super Friday”. It is clear that the bulls are lacking strength especially after breaking through the trend line formed by lows of April 13, 2015 and July 8, 2015. The current market price is 1.5479, which is very close to the support level of consolidation corridor between 1.5690 and 1.5467. The expectations are mostly bearish. This week, economists are expecting to see the data from UK on Employment and wages.

AUD/USD is down to 0.7375 amid strengthening of the dollar imposed by the solid US jobs report data on Friday. The Non-Farm Payrolls data reinforced expectations for higher interest rates, which, according to RBA’s statement will cause further weakening of the aussie.

EUR/USD is slightly up to 1.0970. The flat trade is expected to continue further, while the sentiment is slightly bullish this week. Coming close to September, any comments from Fed will be closely monitored in anticipation of the rise of the greenback.

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Tuesday, August 11th

The Australian dollar fell sharply after publication of downbeat NAB Business confidence survey. The aussie lost 0.63% declining to 0.7317. Technically, AUD/USD has dropped away from the previous resistance levels it was heading to, so the new resistance levels to watch are located in between 0.7418 and 0.7437. The support is likely to be found at 0.7311.

NZD/USD is down today after electronic card retail sales data coming out with lower than expected reading missing the expectations by 0.1%. On Friday, the New Zealand dollar was challenging the 0.6637 level, but has failed to withstand the rising demand for the greenback as Fed officials continued to reiterate on the rate hike with solid employment data of last week. The current NZD/USD quote is 0.6545 with mostly bearish expectations. The key support level is 0.6487 (lows of August 5) and resistance is at 0.6632.

EUR/USD surged yesterday breaking through the 1.10 level as new indicators of Greek bailout could be achieved before the end of the month. A spokesperson from European Commission commented that Greece could receive up to 86 billion euros in critical aid after a weekend of productive talks in Athens. Nevertheless, the single currency declined this morning back below 1.10 currently trading at 1.0970 against the US dollar. German WPI came out in red colour and the market is watching the German ZEW Economic Sentiment due later in the day.

GBP/USD was broadly up yesterday, reaching the 1.56 level after suffering considerable losses last week. The cable was supported by the “less hawkish than expected” comments from Fed, which did suggest the rate hikes are close, but no indications it could possibly happen in September. The strong support level remains at 1.5487, while resistance can be found at 1.5676.

The US dollar index, which measures the greenback’s strength against basket of major currencies, slipped 0.01% overnight to the reading of 97.22. The demand for the dollar is now rising again pushing the index higher to 97.51 (+0.28%).

Ahead in the day, the investors are viewing Canadian Housing starts, Euro zone ZEW Economic Sentiment and US Non-Farm Productivity.

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Wednesday, August 12th

AUD/USD has declined to 0.7264 affected by yesterday’s massive yuan devaluation and today’s downbeat data from China. Chinese Industrial production did not reach the expectation rising only by 6% as opposed to 6.6% expected. The retail sales were also in the red light today. On the other hand, Australian Westpac consumer sentiment was at 7.8% after 3.2% decline last month. The support and resistance levels are at 0.7178 and 0.7373, respectively.

USD/CAD is back above the strong support level of 1.3063 after dipping below it yesterday amid mixed data from US, which indicates the bulls are still strong on this instrument. The US dollar possessed losses after data showed that US unit labor costs rose more than expected in the second quarter, while non-farm productivity came in below forecasts. The pair is trading at 1.3108.

GBP/USD is slightly down today trading at 1.5577. The pair was recovering this week after recent losses, but struggled to extend gains even despite heavy losses seen in the greenback. From the UK, the average earnings data is expected later this morning, so important levels to watch today are 1.5455 for support and 1.5633 for resistance.

EUR/USD is broadly up breaking through the 1.10 level. Greece has agreed on the terms of a multi-year €86 billion bailout from its international creditors, which hopefully will make it possible for the country to make the critical repayment due next week. Today, we will see euro zone’s Industrial Production data. The support and resistance levels to watch are 1.0946 and 1.1129, respectively.

USD/CHF rose to fresh highs at 0.9902 yesterday, but erased gains overnight amid weaker dollar. Later in the day, Swiss ZEW Expectations will be closely watched before the publication of PPI tomorrow. It is not long until the parity is reached, bearing in mind the SNB’s plan to weaken the nation currency even further. The support will be found at 0.9817 and resistance –at 0.9997.

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Thursday, August 13th

In Japan, data showed a higher increase in core machinery orders than expected in June. Meanwhile, the US dollar index, which measures the dollar’s strength against the basket of major currencies, rose 0.12% to 96.43. This rising of the dollar pushed USD/JPY higher to 124.46 after testing the 123.78 level yesterday. The pair is likely to find support at 124.09 and resistance at 124.89.

AUD/USD is trading flat at 0.7363 after excessive yuan volatility wanes after fixing. The Australian MI Inflation Expectations data came in at 3.7% after the previous reading of 3.4%. Ahead in the day, investors are viewing the US Core Retails Sales for further indications of dollar’s strengthening after the recent decline. The support and resistance levels are located at 0.7279 and 0.7472, respectively.

EUR/USD is showing correction after considerable gains of previous days when the pair managed to break through the 1.10 level to reach the highs of the month at 1.1213. One day after Greece agreed on the framework of the multiyear bailout the Greek Parliament is still expected to approve the deal. Today, German, French and Spanish CPI came out in green colour and market is expecting to see the European account of Monetary Policy Meeting in the afternoon. The pair will find support at 1.1036 and resistance at 1.1310.

New Zealand dollar was heading lower after yesterday’s gains. The Kiwi rose above 0.6648 amid weaker greenback, but today’s Food Price Index reading was lower than expected coming out at 0.6% against expectations of 1%. NZD/USD is trading at 0.6593.

USD/CAD is broadly lower falling below the key support level of 1.3063, which can be considered as a strong resistance from this moment. Technically, the rise of two previous weeks might be taken as a bullish trap if the downtrend continues. Later in the day, the Canadian New Housing Price Index is expected. The pair is trading at 1.2993.

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