|Day's Range||1.163 - 1.174|
|52 Week Range||1.1315 - 1.2558|
The EUR/USD pair spent most of the week falling, but early during the Friday session in New York, President Donald Trump tweeted that he wanted to persuade the Federal Reserve to keep interest rates low. Ultimately, this caused a major surge in the value of the Euro, turning around to form a bit of a hammer.
The EUR/USD pair was having a fairly quiet Friday, that was until President Donald Trump tweeted that the US dollar was being unfairly strengthened due to soft economic policy by the EU, Japan, and many other countries. Ultimately, I find this a bit ironic, considering that he doesn’t have the power to change monetary policy.
Elsewhere, the Australian dollar was higher, with AUD/USD up 0.83% at 0.7416, while NZD/USD rose 0.85% to 0.6801. The loonie was higher against the greenback, with USD/CAD down 1.11% to 1.3125.
The U.S. dollar took a hit on Friday after President Donald Trump called China and the European Union currency and interest rate manipulators in a tweet. Trump that "while the U.S. is raising rates while the dollars gets stronger and stronger with each passing day," China and the eurozone were robbing the U.S. of its "big competitive edge." The ICE U.S. Dollar Index (DXY) dropped 0.5% to 94.674, extending previous losses. China's yuan was more timid in response.
The U.S. dollar fell on Friday after U.S. President Donald Trump criticized the Federal Reserve for increasing interest rates but was still on target for a second week of gains. The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.15% to 94.84 as of 5:36 AM ET (9:36 GMT). Despite the dip, the dollar was on target for a second straight week of gains and has risen more than 5% in the last three months due to expectations that interest rates will rise.
The pair has been doing a good job of holding itself into a tight range and has not weakened during the course of the week
The Euro rallied initially during the trading session on Thursday but then broke down through the vital 1.16 level during the US session. This is a very negative sign and suggests that we will eventually go looking to an even more significant support level, the 1.15 handle below.
While the Loonie is on for a move later today, with inflation and retail sales figures expected to support a more hawkish BoC, trade war jitters will continue to grab the headlines, with stats elsewhere on the lighter side through the day.
Investing.com – The dollar reversed course against its rivals Thursday after U.S. President Trump said he was "not happy" about Federal Reserve rate hikes but downside was limited amid optimism over the U.S. economy.
While it’s always nice to think about the upside potential of the stock market, it’s equally important to think about the downside risk. Is it possible that investors have been so mesmerized by the quest for $1 trillion in market valuation by Amazon, Apple or Microsoft that investors have forgotten about downside exposure? We could soon find out.
Investing.com - The dollar hit one-year highs against a currency basket on Thursday, sending the euro below the $1.16 level after bullish comments be Federal Reserve Chairman Jerome Powell cemented expectations for two more rate hikes this year.
Investing.com - The pound dropped below the $1.30 level on Thursday as a result of an unexpected drop in consumer spending in June, further slimming the chances of a Bank of England rate hike in August.
Based on the early price action and the current price at 1.1593, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at 1.1609. Watch the price action and read the order flow at 1.1609 all session. Trader reaction to this angle will tell us if the selling is getting stronger, or if aggressive buyers are coming in to take profits and stop the price slide.
Investing.com - The dollar rose against a currency basket on Thursday, to trade near one-year highs after hawkish comments by the chairman of the U.S. Federal Reserve underlined expectations for two additional rate hikes by the central bank this year.
USDJPY, after breaking major resistances, is having a very technical upswing. The price created a pennant and a wedge, the strong buy signal is ON.
The UK’s retail sales figures dropped unexpectedly in June. Sales declined by 0.5% in June compared to a growth of 1.4% in May. YoY Retail sales grew by 2.9, below analysts expectation of 3.7%. Pound hits a 10-month low near 1.30 versus the US dollar.
With general risk-off attitude, the market is testing the key support level and if it breaks further, then next immediate support in the market will be at 1.1580 level. In the longer term chart, this level has been an important support level and has been tested well in the past.
The Euro fell hard to kick off the Wednesday session, reaching down to the 1.16 level as the US dollar continues to strengthen overall. With a general “risk off” attitude, the market is testing significant support in the form of a large come around, psychologically significant number as I record this.
Employment numbers give the Aussie Dollar a boost as focus shifts to today’s stats out of the UK. Another set of weak numbers and the Pound could be looking at sub-$1.30 levels, progress on Brexit doing few favors.
Investing.com – The dollar was unchanged against its rivals Wednesday as gains on the back of a slump in the pound were offset by soft U.S. economic data showing subdued housing market activity.
A popular U.S. dollar index extends its gains on Wednesday, reflecting a broad advance in the buck against its major rivals.
Based on the early trade, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the short-term Fibonacci level at 1.1617. Basically, look for a potential acceleration to the downside under 1.1601 or a labored short-covering rally over 1.1617.
Powell’s speech with the semiannual report in the U.S. Congress contained an optimistic view on the economic outlook. Such a tone has reduced fears that trade wars will negatively affect economic valuations.
Yahoo Finance's Alexis Christoforous and Jared Blikre break down the latest market action after the Philadelphia Fed Business Survey beats analyst expectations and Jobless Claims print the lowest headline number since December, 1969.