The US ISM services PMI went up to a better-than-expected 56.0 in July, helping boost the greenback against major currencies, at least temporarily.
The EUR/USD pair, for example, dropped to a low of 1.3232 immediately after the release of the report. The pair made a quick recovery, however, and is currently trading at 1.3260.
Prior to the release of the US ISM services PMI, the pair was also dragged down by the weak economic data from the Eurozone. In particular, its retail sales figures went down from 0.3% to -0.9% (YoY, June), and from 1.1% to -0.5% (MoM, June). There was an improvement in investor confidence in July, although it remains in the negative at -4.9. June's investor confidence was at -12.6, which analysts expected to improve to -10.0.
Initial resistance for the EUR/USD is at 1.3340, followed by 1.3374. Meanwhile, initial support is at 1.3234, followed by 1.3201.
Although the GBP/USD was temporarily dragged down by the positive US ISM services PMI, the report did little to derail the pair's performance today. This is primarily due to the UK's strong Marikit Services PMI which rose from the previous 56.9 to 60.2, beating expectations of 57.2.
The pair reached a high of 1.5779 in today's trading session and is currently trading at 1.5355. Initial resistance for the pair is at 1.5404, followed by 1.5442. Meanwhile, initial support is at 1.5196, followed by 1.5158.
The USD/JPY pair had a short-lived boost after the release of the US ISM services PMI. It reached a high of 98.78 in today's trading, but the level is still nowhere near last week's high of 99.94.
The pair is currently on a downtrend, trading at 98.27. Initial resistance for the pair is at 99.46, followed by 99.71. Meanwhile, initial support is at 98.15, followed by 97.91.
Create a FREE account