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FOREX: Greenback Optimism Continues, EURUSD Slides Back Below 1.0500

FOREX
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  • The rally for the US dollar gained further traction on Thursday, as geopolitical risk headlines and a late sell-off for the Euro prompted the ICE USD index to rise back above 107 and print a fresh cycle high.
  • EURUSD finds itself back below the 1.0500 handle and has printed a low of 1.0462 on the move. The 2023 lows at 1.0448 have so far provided support, however, the single currency remains vulnerable ahead of tomorrow’s release of Eurozone flash PMIs. Negative headlines surrounding a Spanish fiscal package and looming VW strikes in Germany have assisted the Euro lower.
  • With equities holding up well throughout the session, the likes of EURAUD and EURCAD have underperformed, and are approaching key levels of 1.6000 and 1.4600 respectively. We provide a full technical update for a selection of EUR crosses here.
  • JPY's resurgent safe haven status is again underpinning the currency, with JPY running firmer alongside another ratchet higher in geopolitical tensions across the early European session. In response to the use of US and Franco-British long-range missiles in Ukrainian territory, Russia were reported to have launched an ICBM strike on Ukraine – however, there were conflicting headlines on the exact definitions later in the day.
  • Either way, EURJPY is down 1.1% on Thursday and reapproaches the Tuesday lows at 161.50, of which a break below would confirm a resumption of the recent bear leg. USDJPY also briefly slipped back below 154.00, however, the broader greenback optimism around the WMR fix provided solid support for the pair.
  • As well as the European and US flash PMIs, UK and Canadian retail sales data is expected Friday, as well as a speech from SNB Chairman Schlegel.
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  • The rally for the US dollar gained further traction on Thursday, as geopolitical risk headlines and a late sell-off for the Euro prompted the ICE USD index to rise back above 107 and print a fresh cycle high.
  • EURUSD finds itself back below the 1.0500 handle and has printed a low of 1.0462 on the move. The 2023 lows at 1.0448 have so far provided support, however, the single currency remains vulnerable ahead of tomorrow’s release of Eurozone flash PMIs. Negative headlines surrounding a Spanish fiscal package and looming VW strikes in Germany have assisted the Euro lower.
  • With equities holding up well throughout the session, the likes of EURAUD and EURCAD have underperformed, and are approaching key levels of 1.6000 and 1.4600 respectively. We provide a full technical update for a selection of EUR crosses here.
  • JPY's resurgent safe haven status is again underpinning the currency, with JPY running firmer alongside another ratchet higher in geopolitical tensions across the early European session. In response to the use of US and Franco-British long-range missiles in Ukrainian territory, Russia were reported to have launched an ICBM strike on Ukraine – however, there were conflicting headlines on the exact definitions later in the day.
  • Either way, EURJPY is down 1.1% on Thursday and reapproaches the Tuesday lows at 161.50, of which a break below would confirm a resumption of the recent bear leg. USDJPY also briefly slipped back below 154.00, however, the broader greenback optimism around the WMR fix provided solid support for the pair.
  • As well as the European and US flash PMIs, UK and Canadian retail sales data is expected Friday, as well as a speech from SNB Chairman Schlegel.