US data fails to inspire the dollar

The USD continues to trade on the back foot as FX markets look for fresh correlations to other asset markets. Volatility remains at elevated levels […]


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By :  ,  Financial Analyst

The USD continues to trade on the back foot as FX markets look for fresh correlations to other asset markets. Volatility remains at elevated levels as investors witness a rally in oil which is closely correlated with a bid tone in the euro, as FX markets adjust to a lower fixed income and equities outcome as a negative for the dollar. The US data highlighted a stronger fundamental picture as both releases should have inspired the dollar. The trade data showed solid US imports which supports the weaker Q1 growth theory as a temporary measure and the ISM data surprised to the upside – yet EUR/USD rallied from a session low of 1.1070 yesterday to 1.1270 (at the time of writing).

The NZD fell over 1% in the Asian session as employment data added to the disappointment of the latest milk price auction. The unemployment rate rose to 5.8% in Q1 versus the consensus forecast of 5.5%, which adds to the pressure on the RBNZ to stimulate the domestic economy with a cut in interest rates.

The UK services PMI data will be the last release before voters head for the polling stations, with the bookmakers calling a hung parliament outcome as a 93% certainty. The US session gives insight to the US jobs report with the ADP survey as Fed chair Janet Yellen is scheduled to speak in Washington.

 

 

EUR/USD
Support
 1.1175-1.1055-1.0920 | Resistance 1.1295-1.-1.1450-1.1535

 

 

USD/JPY
Support 
119.35-118.30-117.50 | Resistance 120.50-120.85-121.55

 

 

GBP/USD
Support 1.5070-1.4920-1.4855 | Resistance 1.5305-1.5450-1.5530

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