The US Dollar weakened after a lower than expected ISM Manufacturing PMI print (48.6 vs. 50.5 expected). The Euro benefited from this and a small short squeeze occurred, which took EUR/USD to 1.0636, just 2 pips away from last Friday's high. The next notable resistance level is now 1.0690, but it is more likely that the pair will continue to consolidate ahead of the ECB meeting tomorrow. Meanwhile, GBP/USD price action remains choppy. It rose to 1.5120 yesterday morning, but weak manufacturing PMI data put the Pound under pressure and the pair fell back to 1.5050. In Asia, it spent the session in a 1.5064-82 range.
USD/JPY remains quite resilient despite the broad USD weakness. Overnight, it bounced from the 122.80 level and is back above 123. Resistance is seen at 123.30/35, while support now lies at 122.60/65. Unless we see any surprising econ data today or tomorrow, USD/JPY is likely to remain in a rather tight range pre-NFP, as it is the case most of the time.
The Aussie and Kiwi Dollar extended gains overnight, with AUD/USD having reached 0.7340 and NZD/USD almost at 0.67. The Canadian Dollar however, has been under pressure following weak GDP data and another decline in Oil prices.
IC Markets is revolutionizing on-line forex trading; on-line traders are now able to gain access to pricing and liquidity previously only available to investment banks and high net worth individuals.