Morning Forex Review

Coming Up Today (all times GMT)

• 8:00am EUR German IFO Business Climate
• 8:30am GBP Public Sector Net Borrowing
• 8:30am GBP Retail Sales
• 12:30pm CAD Core Retail Sales
• 12:30pm USD Unemployment Sales
• 2:00pm USD Philadelphia FED Manufacturing index

The US Dollar on Thursday morning reached its lowest for almost the last three years against a basket of currencies with traders selling the greenback to buy risky assets. Investors were driven to riskier assets because of strong U.S corporate earnings and signs that the global economy is recovering. The US dollar versus the Japanese Yen was dipped by 0.2 percent and found support at the 82.15 key level while the 83.00 is expected to hold any pull back up. Against the Swiss Franc the US dollar is on a slippery slope making new record lows breaking the 89.01 which was a significant support level. At the moment the USDCHF is trading between the 88.49 support level and the 89.01 resistance level. The Australian has reached to a record high level for its first time since it became free-floating in 1980. The forex pair was lastly seen at the 1.0741, it is traded between the 1.0771 resistance level and the 1.0581 support level.

EURUSD

The EURUSD forex pair on Thursday has been moving confidently upwards breaking up to new highs and reaching a record level at the 1.4581, its highest for the last 15-months. The Euro was mainly boosted by higher risk appetite and after a Spanish bond auction was well received by investors. The U.S dollar lost its ground due to negative reports on its debt and the warning by S&P that there is no a credible plan by the US government to reduce deficit, the negative sentiment on the greenback has set the EU problems on the background for the moment. The Euro is now trading at the 1.4566 with the 1.4581 being a resistance level and the 1.4484 expected to hold the short term downtrend.

Support/Resistance 1.4484/1.4581

GBPUSD

The sterling was up to new highs against the weaker dollar, reaching early on Thursday at the 1.6446 level due to the negative sentiment on the greenback that prevails in the forex markets in the last trading sessions. However the sterling has significantly underperformed compared to the Euro and the Aussie as the policymakers yesterday have maintained a 6-3 split in favour of keeping rates on hold and a rate hike in May is very unlikely. The forex pair has penetrated the 1.6425 resistance level and now support, is now trading at the 1.6430 while it found resistance at the 1.6446 level.

Support/Resistance: 1.6425/1.6446