EUR USD
The EUR declined 1.63% against the USD and closed at 1.2936, following the ECB’s unexpected decision to cut its benchmark interest rates and loosen monetary policy even further.
The ECB lowered its main lending rate to 0.05%, a record low from 0.15% and announced a new economic stimulus program that would involve purchase of covered bonds and asset-backed securities in October.
The greenback received a boost from mostly healthy US economic data which continued to reinforce expectations that an interest rate hike may be implemented sooner-than-expected.
The pair is expected to find support at 1.2851, and a fall through could take it to the next support level of 1.2768. The pair is expected to find its first resistance at 1.3086, and a rise through could take it to the next resistance level of 1.3238.
Trading trends in the pair today are expected to be determined by the much critical 2Q GDP of the Euro-zone scheduled few hours from now, as well as unemployment rate and non-farm payrolls data from the US, slated to release later today
GBP USD
The GBP fell 0.87% against the USD and closed at 1.6320, after the BoE stuck to its current loose monetary policy, despite two policymakers voting for a rate hike at the last meeting.
The BoE’s Monetary Policy Committee kept the benchmark interest rates unchanged at a record low of 0.5%. It further maintained the total size of its bond portfolio untouched at £375 billion, following their September policy meeting.
The pair is expected to find support at 1.6243, and a fall through could take it to the next support level of 1.6176. The pair is expected to find its first resistance at 1.6422, and a rise through could take it to the next resistance level of 1.6534.
Going forward, investors would pay attention to inflation expectations from the BoE, scheduled to be released today.
USD/JPY
The USD strengthened 0.52% against the JPY and closed at 105.39 amid prospects of higher US interest rates after US economic data continued to be encouraging.
Early morning data indicated that, in Japan, foreign exchange reserves surplus expanded to $1278.0 billion in August, following a surplus of $1276.0 billion recorded in the previous month.
The pair is expected to find support at 104.82, and a fall through could take it to the next support level of 104.31. The pair is expected to find its first resistance at 105.79, and a rise through could take it to the next resistance level of 106.24.
Going forward, investors await the BoJ’s monthly survey, as well as the leading economic and coincident indices data, scheduled shortly.
USD/CHF
The USD rose 1.65% against the CHF and closed at 0.9327.
The pair is expected to find support at 0.922, and a fall through could take it to the next support level of 0.9116. The pair is expected to find its first resistance at 0.9382, and a rise through could take it to the next resistance level of 0.944.
Trading trends in the Swiss Franc today would be determined by Swiss Q2 industrial production, set for release in a few hours.