The pair settled lower as market participants continued to fret over the lack of progress between Greece and the Troika, who are yet to agree on spending cuts which are vital in order to receive the next bailout tranche. In addition to that, peripheral bond yield spreads continued to widen, with the usual suspects (ie Spain and Italy) underperforming. In terms of technical levels, supports are seen at 1.2878 and then at the 200DMA line at 1.2822. On the other hand, resistance levels are seen at 1.3035 and then at the 21DMA upper Bollinger level at 1.3118.
Even though the pair also settled lower, losses were capped by the fact that pair tends to be supported by safe-haven flows given the perceived detachment from the Eurozone. The latest Manufacturing and Industrial Production reports underpinned the view that the economy will likely require stimulative measures. The ONS said that there is evidence to suggest that some businesses had longer summer closures in August or that closures were held later than in previous years. In particular, this affected monthly transport production data. In terms of technical levels, supports are seen at 1.5987/60 and then at the 55DMA line at 1.5905. On the other hand, resistance levels are seen at the 10DMA line at 1.6130 and then at the 21DMA line at 1.6163.
The pair trended lower, as risk averse sentiment boosted demand for safe haven asset classes. Still, the fact that markets participants are keenly aware of the willingness by the BoJ to ease further or announce a surprise intervention meant that losses were relatively small. In terms of technical levels, supports are seen at 78.08/00 and then at 77.79. On the other hand, resistance levels are seen at 78.65 and then at 78.88.