FX News - May 23 2014: Updates on the EUR/USD, GBP/USD, AUD/USD

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It’s been a choppy day for the EUR/USD pair even after the release of Germany’s Gross Domestic Product (GDP) figures. The pair has been trading in a tight range today within the 1.3642 and 1.3652 areas.

Germany’s GDP s.a. for Q1 came within expectations at 0.8 per cent compared to the previous quarter, while the GDP n.s.a for Q1 was better than expected at 2.5 per cent (2.3 per cent expected) over the past 12 months, and finally the GDP w.d.a. for the past 12 months was at 2.5 per cent as well. In less than an hour, the country will also release the IFO Business Climate, Current Assessment, and Expectations in May, which the market expects to be a mixed bag. Later today, the United States will release its home sales data for April, which might dictate how the trading of the EUR/USD will end this week.

The EUR/USD pair is currently trading at 1.3648, with initial resistance seen at 1.3672, followed by 1.3707. Meanwhile, initial support is at 1.3628, followed by 1.3593.

As for the GBP/USD, the pair is currently on recovery mode, as it dropped sharply during the early part of the Asian session. It fell to a low of 1.6853 after opening in Asia at 1.6866. It managed to return to the 1.6870 area as the day progressed, but it has remained fairly flat since then, as it hovered within the 1.6868 and 1.6876 areas. It is currently trading at 1.6866, with initial resistance seen at 1.6895, followed by 1.6837. Meanwhile, initial support is at 1.6827, followed by 1.6785.

The AUD/USD pair continued to languish under the 0.9300 area today, but got a slight boost on light profit taking. It is currently trading at 0.9237, with initial resistance seen at 0.9249, followed by 0.9272. Meanwhile, initial support is at 0.9185, followed by 0.9162.

By FX Strategy Team, Published on 23rd of May 2014
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