FX News – May 31: USD Slides Further, Positive Data from Japan

FX Strategy Articles > FX Trading Tips

The greenback slid against several majors today after the release of disappointing US GDP figures. This is the currency's first back-to-back dip after a strong surge earlier this month.

US GDP rose from 0.4% to 2.4%, but was slightly lower than the expected 2.5%. Meanwhile, its initial jobless claims rose to 354K, against the expected 340K. YoY pending home sales rose from 7.0% to 10.3%, but missing expectations of 12.6%.

The EUR/USD pair is currently trading at around 1.3035 after dropping as low as 1.2845 in the mid-week.

Initial resistance for the pair is seen at 1.3121, followed by 1.3154. Meanwhile, initial support is at 1.2991, followed by 1.2959.

Positive Data from Japan

A lot of economic data came out of Japan today, many of which were positive. Its industrial production data for April (MoM), for example, rose by 1.7%, beating expectations of just 0.6%. National CPI for April (YoY), meanwhile, met initial expectations of -0.7%. In addition, its Marikit/JMMA Manufacturing PMI for May rose from the previous 51.1 to 51.5. That is not to say, however, that Japan's economic woes are over. Abe, Kuroda and company still has a lot of work ahead of them.

The USD fell against the JPY in today's Asian session. Just last week, the USD/JPY pair rose to as much as 103.54, but is currently trading at around 100.99.

Initial resistance for the USD/JPY is seen at 101.31, followed by 101.56. On the other hand, initial support is at 99.93, followed by 99.68.

Meanwhile, the EUR/JPY pair rose to just above 132.00 in today's trading before falling slightly to its current 131.58 level. Yesterday, the pair finished up by 54 pips to 131.44. The rise was in part helped by the weak US data and positive data from the Eurozone. Economic confidence for the EU rose from 88.6 to 89.4, while consumer confidence moved from the previous -22.3 to a slightly better -21.9, and industrial confidence also moved from -13.8, to -13.0 beating expectations of -13.1.

Initial resistance for the pair is seen at 132.60, followed by 132.93. Initial support, meanwhile, is at 130.83, followed by 130.50.

By FX Strategy Team, Published on 31st of May 2013
eTorro - Trading Starts Here

Start Trading Forex with up to $10,000

  • 100s Videos and FX Strategy articles
  • Advice from our FX traders
  • Practive free with using real time