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US dollar trading down in Europe

As trading opened in Europe today, Euro bulls took advantage of the weak dollar to reach a new intraday high. The dollar was falling across the whole market at the time, so I don’t think that the Euro’s growth can be attributed to European data. The data released was not significant enough to cause that kind of volatility on the market.

Having hit a new maximum, the Euro subsequently fell against the dollar to 1.1161. Neither buyers nor sellers are able to produce sustained movement in one direction. On the hourly timeframe, two candlesticks have closed with long shadows, creating an intraday range of 1.1161 – 1.1188. Whichever direction in which the pair exits this range, it will continue in this direction until the end of the European session. If the rate falls below 1.1161, the closest support is at 1.1150. Should this level be broken through, the way to 1.1130 will be open.

The EURGBP cross is trading down, favouring sellers. The price is trying to break the last support at 0.8769. Any further depreciation of the single currency against the pound will have a negative effect on the Euro against the dollar.

PMI and existing home sales data are set to be published in the US later today. In addition, Federal Reserve members Bullard, Mester and Powell are set to speak.

European statistics:

The Markit manufacturing PMI for France in June has risen to 55.0 (forecast: 54.0, previous reading: 53.8). The services PMI for the same period fell to 55.3 (forecast: 57.0, previous reading: 57.2).

The Markit manufacturing PMI for Germany in June has fallen to 59.3 (forecast: 59.0, previous reading: 59.5). The services PMI for the same period came to 53.7 (forecast: 55.5, previous reading: 55.4).

The Markit manufacturing PMI for the Euro zone in June has grown to 57.3 (forecast: 56.8, previous reading: 57.0). The services PMI for the same period fell to 54.7 (forecast: 56.2, previous reading: 56.3).



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