US fundamentals impact on the currency market were direct and severe, where the euro lost its appeal among traders as they sought safety and profit taking, rather than expanding their investments in risky assets. Stocks fell and investors targeted the dollar along with gold as a safe investment following the release of the advanced GDP reading for the past three months of this year, where it showed that the US economy expanded by 2.4 percent, compared with the previous 2.7 percent, missing the median estimate of analysts at 2.6 percent.
Consumer spending, which accounts for nearly 70 percent of GDP grew by 1.6 during the past quarter, while the report showed that household spending fell by 1.2, the biggest decline since 1942.
Expectations for easing conditions in the US forced the dollar to rise against majors, accordingly, hammering down exports and causing spending to shrink in the US. Investors risk appetite was damaged where stocks in Europe and the US fell, extending the losses acquired in Europe over the past three days.
The US dollar index, a gauge of the dollar’s performance against six major currencies, trimmed off losses, where the index reached the highest at 81.97, and the lowest at 81.48 before bouncing back to trade near the opening levels of 81.65 as it’s trading at 81.63. Gold gained to trade at $1172.00 an ounce.
As for trading, the euro-dollar pair slashed its advance. The pair opened today’s trading at 1.3077 while reaching the highest at 1.3093 and the lowest at 1.2978. Currently, the pair is trading at 1.3010 and dropping. Trading above key support for the ascending channel at 1.2915 will maintain chances of the bullish trend continuing to test levels around 1.3115 then 1.3280.
Moving to the Royal currency, the pair dropped on the daily scale where its currently trading at $1.5580, compared with the opening levels of $1.5609, the pair reached the highest at $1.5655 and the lowest at $1.5549. A bearish correctional move will affect trading for the remainder of today’s trading targeting 1.5460 and 1.5330, before turning within the bullish overall direction later. Keep in mind that these expectations require stability below 1.5725 for the four-hour closing.
Finally talking about the dollar’s performance against the Yen, the USDJPY pair depreciated as its trading at 86.25, compared with the opening levels of 86.77, the pair managed to reach the highest levels today at 86.97 and the lowest at 85.92. A bearish intraday trend is projected with targets at 84.75, which requires stability below 86.25.
