Leaving the interest rate unchanged by the ECB and BoE was expected in the marketplace, but what was most missed was a clear statement to continue with more of the central banks’ bond market support by buying it up. Ahead of the institutions’ statements, the market reckoned with more downside volatility for the USD - these expectations just evaporated. With the central banks now in equality, neither the Fed nor the ECB and BoE will do more monetary expansion, Forex will concentrate more on pure economic data. And there, the U.S. is ahead; clear signs of recovery and later inflation are a fact. That weighs on the Greenback longer term, but for today the market is undecided, with very low volatility.
Some of the steam in today’s so far dull market for the USD could build up after the publication of the U.S unemployment rate and the non-farm payrolls for May at 14:30 CET. An improvement of the numbers is not expected, but any sign of an improvement would put pressure on the dollar. For today, we expect a narrow sideways trading band for the USD, as explained in detail in the major pairs below.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair is following a narrow trading band in European morning trading, between the 1.4200 and 1.4150 marks. We cannot see much change in that market today, currently trading at the lower end at 1.4170, and most probably turning a little higher soon.
GBP / USD
Cable is showing higher volatility than its cousin EUR in early European trading, right now falling to support levels around 1.6000 and currently trading at 1.6045. We expect this support level of 1.6000 to hold in today’s trading, but do not see much recovery potential.
USD / CHF
The dollar is continuing to hover above its support zones against the Swiss franc. Currently trading at 1.0715, it is caught in a narrow trading range between 1.0750 and 1.0650. We expect that kind of market to continue today, with up- and downmoves between these marks.
USD / JPY
Losing more and more of its upward steam against the yen, the dollar is currently trading in a sideways market, priced right now at 96.80. We expect the resistance zone of 96.90 / 97.00 to hold in today’s trading, and see some downmoves from there back to the lower end of the sideways market, at 96.50.
Some of the steam in today’s so far dull market for the USD could build up after the publication of the U.S unemployment rate and the non-farm payrolls for May at 14:30 CET. An improvement of the numbers is not expected, but any sign of an improvement would put pressure on the dollar. For today, we expect a narrow sideways trading band for the USD, as explained in detail in the major pairs below.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair is following a narrow trading band in European morning trading, between the 1.4200 and 1.4150 marks. We cannot see much change in that market today, currently trading at the lower end at 1.4170, and most probably turning a little higher soon.
GBP / USD
Cable is showing higher volatility than its cousin EUR in early European trading, right now falling to support levels around 1.6000 and currently trading at 1.6045. We expect this support level of 1.6000 to hold in today’s trading, but do not see much recovery potential.
USD / CHF
The dollar is continuing to hover above its support zones against the Swiss franc. Currently trading at 1.0715, it is caught in a narrow trading range between 1.0750 and 1.0650. We expect that kind of market to continue today, with up- and downmoves between these marks.
USD / JPY
Losing more and more of its upward steam against the yen, the dollar is currently trading in a sideways market, priced right now at 96.80. We expect the resistance zone of 96.90 / 97.00 to hold in today’s trading, and see some downmoves from there back to the lower end of the sideways market, at 96.50.
