FX News - April 17 2014: Strong USD on Philly Fed Manufacturing Survey

FX Strategy Articles > FX Trading Tips

The Philadelphia Fed Manufacturing Survey helped lift the greenback against a number of currencies in today’s US trading session. It came out at 16.6, which was significantly higher than the expected 10.0, and the previous 9.0. This led to a stronger greenback despite the disappointing EIA Natural Gas Storage Change, which was at 24B, lower than the expected 35B, although higher than the previous 4B.

The Manufacturing Survey data somehow erased the EUR/USD pair’s gains during the European session earlier. During that session, the pair managed to peak at 1.3864, but since then went on a steady decline. The pair bottomed out at the 1.3830 area after that, and is currently trading at 1.3836. Initial resistance for the pair is at 1.3859, followed by 1.3894. Meanwhile, initial support is at 1.3809, followed by 1.3774.

The greenback is also faring well against the sterling at the moment, although the GBP/USD pair’s dip happened much earlier during the European session. The pair managed to reach around 1.6835 during today’s Asian session, a level it was able to sustain until the early part of the European session before going on a steady decline. This came after the positive outlook of the sterling as the market expects the BoE to announce a rate hike earlier than expected.

The GBP/USD pair is currently trading at 1.6809, with initial resistance seen at 1.6858, followed by 1.6900. Meanwhile, initial support is at 1.6758, followed by 1.6716.

It’s a different story with the USD/CAD pair, however, as it is currently on a downtrend due to the strong Canadian dollar. The pair already sank under the 1.1000 area in today’s US trading session after peaking near the 1.1020 area. It is currently trading at 1.0987, with initial resistance seen at 1.1061, followed by 1.1089. Meanwhile, initial support is at 1.0985, followed by 1.0957.

By FX Strategy Team, Published on 17th of April 2014
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