By Russell Glaser
The dollar was off of its last week highs versus the majors as positive US economic data feeds into USD selling. The euro, pound, and Canadian dollar were all stronger versus the greenback as traders await economic data from both Britain and the US.
Today’s Economic Data Releases:
GBP – Current Account – 8:30 GMT
Expectations: -10.3B. Previous: -9.6B.
The pound has come off of last week’s high, after which sterling shed 5 cents on the US dollar. The declines in sterling may be overdone but momentum has yet to pick up. A better than expected current account release would help the pound recover. Initial resistance for the GBP/USD is located at 1.6050, followed by 1.6200. To the downside where momentum is pointing, yesterday’s low of 1.5930 should be supportive as the 100-day moving average comes in near this level. A breach of this level may target 1.5870 which is the 50% retracement from the December to March move.
USD – Conference Board Consumer Conference – 14:00 GMT
Expectations: 64.9. Previous: 70.4.
Yesterday’s stronger than expected US personal income and personal spending data is a positive sign for the US economy and fed into USD selling. A better than expected CB survey should extend yesterday’s trends and be a negative for the greenback. The USD/CAD has steadily declined and continued USD weakness could continue to push the pair lower. First support is found at 0.9730 with a target the swing low at 0.9666. Resistance is located at the 50-day moving average that comes in at 0.9830.
Forex Market Analysis provided by ForexYard.
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