EUR/USD
The pair finished the week with modest gains, even as market participants continued to fret over potential military action in Syria, as well as following somewhat dovish comments by ECB’s Hansson. Even though EUR/GBP touched on lowest level since mid-January amid the release of better than expected UK macroeconomic data, the pair benefited from consequent USD weakness amid a firmer GBP pair. Of note, ECB's Hansson said the ECB has discussed another LTRO, but so far the policy package the ECB has seems appropriate also weighed on the pair. Hansson added that he would not say ECB are running out of policy options. Also of note, ECB's Asmussen said it is too early to tighten accommodative monetary policy. Technically, support levels are seen at 1.3228 which is also the 10-DMA line, 1.3157 (Sep-9 low) and then at 1.3150. On the other hand, resistance levels are seen at 1.3343 (Aug-29 high), 1.3399 (Aug-28 high) and then at 1.3410 (Aug-23 high).
GBP/USD
The pair finished the week higher, supported by another round of better-than-expected macroeconomic data releases, which also saw EUR/GBP touch on lowest level since mid-January and the major pair advance to its highest since mid-February. The official figures also showed the number of people claiming Jobseeker's Allowance fell 32,600 to 1.402mln, its lowest level since February 2009. However at the same time, the number of people in part-time work rose to 1.45mln, the highest since records began in 1992 and double the number of five years ago. In other news, the MPC who testified to the Treasury Select Committee failed to alter market expectations of future interest rate hikes. Of note, BoE's Carney said that he expected that yield curve would steepen after introduction of forward guidance, central bank has not dropped 2% medium term inflation target. Separately, BoE's Miles said policy can be more expansionary if needed and forward guidance says the BoE is not looking to tighten. In terms of technical levels, supports are seen at 1.5719 (Sep-11 low), 1.5686 (Sep-10 low) and then at 1.5681, which is the 10-DMA line. On the other hand resistance levels are seen at 1.5845 (Feb-8 high), 1.5879 (Feb-1 high) and then at 1.5892 (Jan-23 high).
USD/JPY
The pair finished the week largely unchanged, as speculation of Fed announcing QE tapering at its next week’s meeting was offset by the geopolitical tensions surrounding Syria, where at least for now there will be no military action by the US as Syria seeks to negotiate its surrender of chemical weapons. Even though the pair is largely flat for the week, USD/JPY 3m R/Rs have fallen to lowest level since late July, however implied vols are only marginally bid. Technical studies indicate that support levels may be found at the 100-DMA line at 99.04, the 21-DMA line at 98.78 and then at 98.28, which is also the Ichimoku Cloud top. On the other hand, resistance levels are seen at the psychologically important 100.00 level, 100.62 (Sep-11 high) and then at 101.05 (Jul-22 high).
The pair finished the week with modest gains, even as market participants continued to fret over potential military action in Syria, as well as following somewhat dovish comments by ECB’s Hansson. Even though EUR/GBP touched on lowest level since mid-January amid the release of better than expected UK macroeconomic data, the pair benefited from consequent USD weakness amid a firmer GBP pair. Of note, ECB's Hansson said the ECB has discussed another LTRO, but so far the policy package the ECB has seems appropriate also weighed on the pair. Hansson added that he would not say ECB are running out of policy options. Also of note, ECB's Asmussen said it is too early to tighten accommodative monetary policy. Technically, support levels are seen at 1.3228 which is also the 10-DMA line, 1.3157 (Sep-9 low) and then at 1.3150. On the other hand, resistance levels are seen at 1.3343 (Aug-29 high), 1.3399 (Aug-28 high) and then at 1.3410 (Aug-23 high).
GBP/USD
The pair finished the week higher, supported by another round of better-than-expected macroeconomic data releases, which also saw EUR/GBP touch on lowest level since mid-January and the major pair advance to its highest since mid-February. The official figures also showed the number of people claiming Jobseeker's Allowance fell 32,600 to 1.402mln, its lowest level since February 2009. However at the same time, the number of people in part-time work rose to 1.45mln, the highest since records began in 1992 and double the number of five years ago. In other news, the MPC who testified to the Treasury Select Committee failed to alter market expectations of future interest rate hikes. Of note, BoE's Carney said that he expected that yield curve would steepen after introduction of forward guidance, central bank has not dropped 2% medium term inflation target. Separately, BoE's Miles said policy can be more expansionary if needed and forward guidance says the BoE is not looking to tighten. In terms of technical levels, supports are seen at 1.5719 (Sep-11 low), 1.5686 (Sep-10 low) and then at 1.5681, which is the 10-DMA line. On the other hand resistance levels are seen at 1.5845 (Feb-8 high), 1.5879 (Feb-1 high) and then at 1.5892 (Jan-23 high).
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USD/JPY
The pair finished the week largely unchanged, as speculation of Fed announcing QE tapering at its next week’s meeting was offset by the geopolitical tensions surrounding Syria, where at least for now there will be no military action by the US as Syria seeks to negotiate its surrender of chemical weapons. Even though the pair is largely flat for the week, USD/JPY 3m R/Rs have fallen to lowest level since late July, however implied vols are only marginally bid. Technical studies indicate that support levels may be found at the 100-DMA line at 99.04, the 21-DMA line at 98.78 and then at 98.28, which is also the Ichimoku Cloud top. On the other hand, resistance levels are seen at the psychologically important 100.00 level, 100.62 (Sep-11 high) and then at 101.05 (Jul-22 high).
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