EUR/USD has posted slight gains on Friday

EUR/USD has posted slight gains on Friday, as the pair trades at 1.1150. On the release front, Friday is data-heavy, so we can expect some movement from EUR/USD, especially in the North American session. Eurozone Final CPI posted a small gain of 0.1%, while Core Final CPI climbed 0.9%, as both readings matched the forecast. In the US, we’ll get a look at CPI and Retail Sales reports, as well as the UoM Consumer Sentiment Index. Consumer numbers are critical for economic growth, so the markets will be following the US releases closely. Any unexpected readings could have a strong impact on the movement of EUR/USD.

EUR/USD

Summary :
Target Level : 1.119
Target Period : 2 days
Analysis :
Ascending Triangle has broken through the resistance line at 14-Jul-12:00 2016 GMT. Possible bullish price movement forecast for the next 2 days towards 1.119.
Supporting Indicators :
Upward sloping Moving Average
Resistance Levels :
( B ) 1.1126Last resistance turning point of Ascending Triangle.
Support Levels
( A ) 1.1043Last support turning point of Ascending Triangle.

 

USD/JPY recorded small gains in the Asian session

•USD/JPY recorded small gains in the Asian session but and continued with sharp gains in European trade. The pair is unchanged in North American trade
•105.87 is under strong pressure as resistance
•104.99 has switched to support after sharp gains by USD/JPY in the Thursday session
•Current range: 104.99 to 105.87
The Japanese yen has resumed its downward slide on Thursday and posted sharp losses. In the North American session USD/JPY is trading at 105.80. On the release front, there are no Japanese events on Thursday. In the US, the Producer Price Index gained 0.5 percent, beating the estimate. Unemployment Claims remained at 254 thousand, beating expectations. Friday promises to be busy, as the US releases consumer inflation, retail sales and consumer confidence reports.
There was positive news out of the US on Thursday. Inflation showed some strength, as PPI climbed 0.5 percent, ahead of the estimate of 0.3 percent. This marked the highest monthly gain since May 2015. Core PPI followed suit with a gain of 0.4 percent, beating the forecast of 0.1 percent. On the employment front, Unemployment Claims remained at 254 thousand, below the estimate of 263 thousand. Is US inflation on the move? We’ll get a look at CPI numbers on Friday, and a solid release could boost the US dollar.

Sterling rose 1.4% against the dollar

Sterling rose 1.4% against the dollar to $1.330 by late afternoon in Europe after rising around 2% in the wake of the decision. The FTSE 100 and FTSE 250 share indexes fell 0.7% and 0.15%, respectively, in the immediate aftermath of the BOE's announcement. Both were trading slightly higher by late afternoon in Europe.
The Stoxx Europe 600, a broad measure of large European stocks, also recovered most if its losses and was trading up 0.9%.
"The Bank of England stood firm today, surprising markets, which had been bracing themselves for a rate cut," said Dean Turner, economist at UBS Wealth Management. "But this is not the end of the story."
Markets had been expecting a cut, pricing an 80% chance that the central bank will lower its rate to 0.25%. This would have been the first cut since the depths of the financial crisis in 2009.

Canadian currency was boosted by the less dovish outlook

The USD/CAD lost 0.364 percent in the last 24 hours. The pair is trading at 1.2988 after the Bank of Canada (BoC) left interest rates unchanged this morning. The loonie got a boost from the central bank holding rates despite the drop in oil prices that came after the release of U.S. crude inventories.
The Monetary Policy Report published quarterly by the central bank also gave an assessment of the detrimental impact of the Alberta wildfires. The disaster eroded 1.1 percent of the Q2 growth taking with it the forecasted growth and turning it into a contraction.
The Canadian currency was boosted by the less dovish outlook as Governor Poloz continued his optimism about a second half rebound.

GBP/USD ratio is showing limited movement

The British pound has shown movement in both directions on Wednesday but is unchanged over the course of the day. GBP/USD is currently trading at 1.3260. This follows strong gains in the Tuesday session. On the release front, the BOE released its quarterly Credit Conditions Survey. In the US, there are no major releases on the schedule. Wednesday’s highlight is Crude Oil Inventories, with the estimate standing at -2.3 million barrels. On Thursday, the US will release two key events – PPI and Unemployment Claims.GBP/USD ratio is showing limited movement on Wednesday. Long positions have a slight majority (52%), indicative of slight trader bias towards GBP/USD moving higher.

The dollar fell against most currencies Tuesday

The dollar fell against most currencies Tuesday, as the prospect of fresh stimulus from the world's largest central banks pushed investors into emerging markets and other higher yielding assets.
The Wall Street Journal Dollar Index, which measures the dollar against a basket of 16 currencies, was recently down 0.1% to 87.05, amid losses against the pound and emerging market currencies.
Investors expect the Bank of England, Bank of Japan and European Central Bank to announce new stimulus measures in the next few months, as they try to kick-start growth and shield their economies from the fallout of a U.K. departure from the European Union.