The US dollar struggling to hold onto Friday’s gains
City Index October 7, 2014 2:11 PM
<p>The USD lost most of its gains yesterday on what can only be described as profit taking after the huge moves we see on Friday […]</p>
The USD lost most of its gains yesterday on what can only be described as profit taking after the huge moves we see on Friday and some concerns on the timing issues of the next FED rate hike. Today is starting a bit mixed with the euro losing, and the yen and GBP strengthening against the greenback.
The pound has started strongly today but failing so far to break the 1.6110 resistance level, but has rallied from a low of 1.5939 on Friday to a 1.6100 level now. Manufacturing production is due out this morning which will no doubt help in either direction, expected to be lower than last at 0.2% from 0.3%.
The euro led the gains yesterday climbing from a low on Friday of 1.2498 to a high of 1.2674, again the profit taking was key here, and now await our next direction.
The JPY also strengthening against the USD, sending back down to 108.60 with the BoJ staying unchanged on their policy and Kuroda saying the weak yen is positive for the Japanese economy. Currently staying strong in this USD move across the board, with Kuroda talking now he could help the yen to weaken further with his comments.
The RBA overnight announced that it is keeping the cash rate at 2.50% but noting that the Aussie dollar is still too high. Despite this, the AUD found it as a positive and had a small bounce and is now just trading below the 0.88 level.
Supports 1.2610 1.2580 1.2570 | Resistance 1.2640 1.2660 1.2700
Supports 108.45 108.00 107.10 | Resistance 108.80 109.15 109.70
Supports 1.5995 1.5956 1.5940 | Resistance 1.6110 1.6160 1.6210