EUR/USD lost a small amount of ground early in today’s Asian session with the pair falling to the 1.10298 area following yesterday’s high of 1.10848. The market has been bid for three days following this week’s low of 1.09263, the weakest print since May 2017. Traders are eyeing the 1.08624 area, a significant technical level that represents the 76.4% retracement of the 1.03395 – 1.25550 range. Traders await German July industrial production numbers along with Eurozone Q2 GDP and employment data today. If Q2 GDP data print below 1.1% y/y, it will bolster the case for more policy accommodation from ECB next week. Major data in the US today include August non-farm payrolls with one forecast calling for a 160,000 print and an unemployment rate around 3.7%.
USD/JPY was bid higher early in today’s Asian session as the pair climbed to the 107.102 area, adding to its upward progress following its recent low print of 104.463. Stops were elected above the 106.891 area yesterday, the 50% retracement of the recent depreciation from 109.318, and this area has coincided with today’s intraday low. The 107.463 area is the pair’s next upside price objective with Stops likely in place above. A couple of upcoming data prints include the July leading index and July coincident index, and may add to the weak July real earnings data from this week. BoJ’s next interest rate decision is set for 19 September.
GBP/USD was slightly lower early in today’s Asian session with an intraday low around the 1.23221 area after peaking around the 1.23538 area yesterday. Traders lifted cable from a recent low of 1.19586 earlier this week, its weakest print since October 2016, following the high drama in the UK Parliament regarding Brexit,