FX News - June 24, 2014: EUR/USD Climbs in US Session

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The EUR/USD pair is climbing early in today’s US session in a morning filled with events. Earlier, US Philadelphia Fed President Charles Plosser said that the jobs figures could exceed expectations for this year, which could bring the country to a rate hike sooner. He said he expects the country’s GDP going beyond 2.4 per cent this year, before falling slightly next year. Meanwhile, the country’s unemployment rate is expected to drop to 5.8 per cent by the end of the year, and to 5.6 per cent by the end of 2015.

The US also released its Redbook index, which was slightly lower compared to previous figures. YoY numbers were at 3.3 per cent (previously 3.5 per cent), and MoM figures went down by 1.7 per cent (previously -1.6 per cent). The country’s Housing Price Index went flat in April compared to the previous month, while the S&P/Case-Shiller Home Price Indices went up only by 10.8 per cent (11.6 per cent expected) over the past 12 months. Coming up are the US Consumer Confidence, New Home Sales, and a number of other US-centric events.

The EUR/USD pair was fairly flat in today’s Asian session, opening at 1.3600 before dropping slightly to a low of 1.3592. Then it shot up during the European session, peaking at 1.3627. It is currently trading at 1.3617, with initial resistance seen at 1.3629, followed by 1.3664. Meanwhile, initial support is at 1.3589, followed by 1.3555.

The opposite was true for the GBP/USD pair, which suffered from BoE Governor Mark Carney’s dovish statement, wherein he said that the first rate move would be data driven, and that “the path of interest rates is likely to be limited and gradual.” This led the pair to drop by about 50 pips early in the European session, from around the 1.703 area to under the 1.6980 zone. It is currently trading at 1.6990, with initial resistance seen at 1.7063, followed by 1.7106. Meanwhile, initial support is at 1.7015, followed by 1.6972.

By FX Strategy Team, Published on 24th of June 2014
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