FX News – January 6 2014: EUR, GBP Open Weakly VS USD in Asian Session

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The EUR/USD pair opened on a weak note in today's Asian trading at somewhere around the 1.3580 level. One of the reasons for this is the continued weakness of the European Union's (EU) economy as a whole.

There are a number of news that would affect the pair this week, starting with today's release of the Marikit Services PMI for December (8:58 AM, GMT). The current figure is at 51.7, while analysts expect it to improve to 52.1. Any figure lower than that could drag the EUR/USD pair even lower.

Other data coming from the EU include the Consumer and Producer Price Indices (January 7, 10:00 AM, GMT), Retail Sales and Unemployment Rate (January 8, 10:00 AM, GMT), and the European Central Bank's Interest Rate Decision (January 9, 12:45 PM, GMT).

The EUR/USD pair is currently trading at 1.3573 with initial resistance seen at 1.3628, followed by 1.3662. Meanwhile, initial support is at 1.3538 followed by 1.3504.

As with the EUR/USD, the GBP/USD pair also opened weakly in today's Asian trading. This is due to the decline in most stock indices in the Asia-Pacific region.

The pair's value sank even further later in the day. After opening at 1.6411, the GBP/USD slid even more and is currently trading at 1.6361. Initial resistance for the pair is at 1.6440, followed by 1.6481. Meanwhile, initial support is at 1.6359, followed by 1.6318.

The NZD/USD hovered around a tight range in today's trading, also due to the decline in Asian stocks. The pair has so far traded around the 0.8100-0.8300 areas, with no indication of a clear direction at the moment. This is because bullish sentiment on both the NZD and USD, which offsets any advantage one currency has over the other.

The NZD/USD pair is currently trading at 0.8255, with initial resistance at 0.8365, followed by 0.8386. Meanwhile, initial support is at 0.8225, followed by 0.8205.

By FX Strategy Team, Published on 6th of January 2014
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