Overnight, it was rather quiet in markets with no significant data releases. The safe havens – CHF and JPY – rose against most other major currencies and the Asian stock indices are all down on the day.
EUR/USD found decent support at 1.1120 in the early Asian session and rallied to 1.1170 from there. Resistance is now seen at 1.1190/95, followed by 1.1250. GBP/USD had a sharp decline yesterday after CPI data came in slightly lower than expected and renewed Brexit worries put the Pound under pressure. It fell from 1.4520 in the European session to a low of 1.4280 in New York. Since then, it has consolidated in a 1.4290-1.4310 range.
USD/JPY failed to reach the 115 level and renewed risk-off sentiment pushed the pair back below 114. In Asia, it reached a low of 113.59 so far. Expect some immediate support at 113.50, but there are plenty of stops lying beneath the level and should it break, it is likely we will see a move towards the 112.80 support level.
USD/CAD declined in Asia, as oil prices bounced. The pair fell from 1.39 to a low of 1.3846 and support is now seen at 1.38, followed by 1.3750. To the topside, the 1.3910-20 area remains the main obstacle for now and a break above would pave the way for a 1.4020 test.
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