EUR/JPY meets support near 123.60 after data

EUR/JPY drops and rebounds from the 123.60 region.
The better mood in the dollar weighs on the cross on Wednesday.
US ADP, GDP surprised to the upside in the calendar.

Pablo Piovano FXStreet

The resumption of the risk aversion is lending support to the demand for the greenback and weighs on EUR/JPY, which has so far met contention in the 123.60 area on Wednesday.

EUR/JPY is now focused on upcoming data

EUR/JPY is fading part of the recent 2-day advance to the 124.20 region, area coincident with a resistance line off the June 22 low at 119.31.

The improved sentiment around the buck comes in tandem with the resumption of the risk-off trade among investors on the back of the unremitting advance of the second wave of the COVID-19 pandemic.

In addition, the recent presidential debate between President Donald Trump and his Democrat adversary Joe Biden seems to have casted more questions than answers and it appears to have been also collaborating with the demand for the dollar.

Earlier in the session, ECB’s Christine Lagarde once again showed concerns over the low inflation levels in the region, while Board member Madis Müller talked down the level of the exchange rate.

In the docket, German Retail Sales and the labour market surprised to the upside, while Italian consumer prices are expected to contract more than expected in September.

In the US, the ADP employment report came in at 749K in for the month of September and the final print of the Q2 GDP showed the economy contracted slightly less than forecasted. Additional data include Pending Home Sales, the Chicago PMI and the EIA’s report on crude oil stockpiles.

EUR/JPY relevant levels

At the moment the cross is losing 0.18% at 123.79 and a move below 122.37 (monthly low Sep.28) would open the door to 120.91 (200-day SMA) and finally 119.31 (monthly low Jun.22). On the flip side, the next up barrier is located at 124.60 (55-day SMA) followed by 126.46 (weekly high Sep.10) and then 127.07 (2020 high Sep.1).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.