First there was the unexpected rise in the GDP for the second quarter and now it is the important ZEW survey, which rose above the negative area to 56.1. Expected was 45.0. For our taste, this comes all a little too quickly - right out of deep pessimism now to foaming optimism. At the least, the ECB might lean back a little now, and with growing solidity of the economic recovery, reduce the monetary expansion. This could be a new aspect for the EUR / USD, with the market right now on a so far young recovery, but still moving up in this European morning.
We expect the weak tone for the USD to be kept in today’s trading, especially against the EUR and the GBP, to a lesser degree in the CHF and not at all against the JPY, as explained in the details below. There are no special market-moving indicators scheduled for today.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
This market is on a slow recovery move in early European trading hours, right now on a slight downward correction to present levels around 1.4100. We see these levels as the major support for today, giving way to more recovery moves up to the 1.4160 mark.
GBP / USD
In high volatility, the pound lost ground against the dollar in this European morning and is currently trading at 1.6390. The now heavily oversold situation of the market calls for recovery moves; we see it reaching levels around 1.6490 today.
USD / CHF
Two near zero interest level currencies, like this market represents, do not create much in the way of directive movements. In low volatility, the dollar gained some territory in early European trading against the Swiss franc and is priced right now at 1.0770. We see a sideward movement developing today, between 1.0780 and 1.0740.
USD / JPY
After touching an important support zone against the yen around 94.00, the dollar recovered somewhat in this European morning and is currently trading at 94.30. We expect more of that recovery to come today, leading to levels around 94.80.
We expect the weak tone for the USD to be kept in today’s trading, especially against the EUR and the GBP, to a lesser degree in the CHF and not at all against the JPY, as explained in the details below. There are no special market-moving indicators scheduled for today.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
This market is on a slow recovery move in early European trading hours, right now on a slight downward correction to present levels around 1.4100. We see these levels as the major support for today, giving way to more recovery moves up to the 1.4160 mark.
GBP / USD
In high volatility, the pound lost ground against the dollar in this European morning and is currently trading at 1.6390. The now heavily oversold situation of the market calls for recovery moves; we see it reaching levels around 1.6490 today.
USD / CHF
Two near zero interest level currencies, like this market represents, do not create much in the way of directive movements. In low volatility, the dollar gained some territory in early European trading against the Swiss franc and is priced right now at 1.0770. We see a sideward movement developing today, between 1.0780 and 1.0740.
USD / JPY
After touching an important support zone against the yen around 94.00, the dollar recovered somewhat in this European morning and is currently trading at 94.30. We expect more of that recovery to come today, leading to levels around 94.80.
