Greenback Gets Stronger, USDJPY Eases on Data and on Risk of Syria | IFCM UK
IFC Markets Online CFD Broker

Greenback Gets Stronger, USDJPY Eases on Data and on Risk of Syria - 30.8.2013

The US dollar soared to 4-week high on growing expectations that the FED will reduce the amount of asset purchases per month as macro data have been positive in the recent sessions. Yesterday the US Bureau of Economic Analysis said that the GDP grew by 2.5% in the 2nd quarter, faster than earlier estimated at 1.7% and today is expected that the Consumer Spending will display increase in July as well. The US dollar index advanced to 82.03 which is the 161.8% of the correction from 81.68 to 81.08, thus we would expect some consolidation before the upside resumes, ahead of next resistance at 82.50.


The USDJPY eased lower to support at 98.06 firstly due to stronger CPI and Unemployment for Japan and on consolidating equities. The Japanese National CPI for July was in line with expectations rising by 0.7%, up compared to 0.2% in June, while National CPI excluding fresh food rose by 0.7%, higher than projected and up from previous month of 0.4% increase. Unemployment rate surprisingly dropped to 3.8% in July from 3.9% in June and lastly Industrial Production advanced by 3.2% in July up from -3.1% in June. The recent data supported well the Japanese Yen, setting pressure on the USDJPY which was also weighed by falling NIKKEI225 on risk of military strike against Syria by USA, UK and France. Downside momentum resumed as of writing with the USDJPY sinking lower, was lastly seen at 97.91.


The Euro was one of the biggest losers against the greenback in the recent trading as risk averse sentiment increased selling pressure on the common currency. In addition, yesterday weaker German jobs report and CPI, as well as previous comments of German Chancellor Merkel about Greece that was a mistake to accept it as a full member in the Euro zone, made the Euro heavier. However, the August 20 CFTC report indicated that the net long position in the Euro increased by $3.5B to $6.2B, it seems now that the pair is getting into correction phase and could head towards the 61.8% of the 1.2755 to 1.3451, at 1.3020.



IFCM Trading Academy - New era in Forex education
Pass Your Course:
  • Get Certificate
trading academy

See Also

image
Follow the Market with Our Live Tools and Calendars
Close support
Call to Skype Call to WhatsApp Call to telegram Call Back Call to messenger