EUR/USD
The pair settled the session lower, underpinned by comments from EU’s Juncker who said that the EUR exchange rate is dangerously high. Even though comments from ECB's Nowotny managed to support the pair earlier in the session, cautious sentiment linked to uncertainty surrounding debt ceiling talks in the US buoyed demand for safe haven assets. Of note, the German economy ministry cut their growth forecast for Germany from 1% to 0.4% as expected following earlier source comments during the week. In terms of technical levels, supports are seen at the 21DMA line at 1.3200, the 10DMA line at 1.3193 and then at 1.3039.GBP/USD
The pair trended lower for much of the session however crucially settled above the key 1.6000 level as market participants continued to fret over the potential loss of the much cherished AAA rating. On that note, Fitch analysts noted that the risks of Britain losing it AAA status are clearly increasing. Fitch warned it could downgrade the UK if the country's budget in March shows debt levels continuing to rise. In terms of technical levels, supports are seen at 1.5962/20 and then at 1.5828. On the other hand, resistance levels are seen at the 10DMA line at 1.6079, the 21DMA line at 1.6137 and then at 1.6182.USD/JPY
Even though the spot settled lower, as market participants reacted to comments from LDP general secretary Ishiba said a weaker JPY may be troublesome for some industries, options market remained active and the 1-month implied vol edged to highest level since Sep-2011. In terms of technical levels, supports are seen at 87.40, 86.77 and then at 86.52. On the other hand, resistance levels are seen at 88.88, 89.09 and then at 89.67.
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.