EUROPEAN SESSION UPDATE: Despite the decline in EUR/USD and GBP/USD, European equities are still trading higher; little reaction to a rise in German unemployment…
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The US Dollar has gained over the European session, possibly a further risk-averse reaction to the Syria related developments. Russia has sent armed ships to the Mediterranean this morning, but the tone from the US and the UK seems to have lost some of the initial urgency. Also, US Dollar may be gaining strength ahead of the release of the annualized GDP for Q2 revision set to be released this afternoon.
Despite the decline in the Euro and Pound against the US Dollar, European equities are trading higher, further suggesting that the decline in the pairs was due to US Dollar strength.
In economic releases, German unemployment surprisingly climbed by seven thousand people in August, but the Euro did not significantly react. At the end of the European session, German inflation for August will be released, 1.7% is expected. Despite some recent improved economic releases from the Euro-zone, EU’s Rehn said today that it’s premature to says the European crisis is over.
The Pound is trading around 1.5500 against the US Dollar at the time of this writing. The 1.55 significant level may continue to provide support here, while resistance may come in at 1.5658, by a downward trend line from January.
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GBPUSD Daily: August 29, 2013
Chart created by Benjamin Spier using Marketscope 2.0
— Written by Benjamin Spier, DailyFX Research. Feedback can be sent to bbspier@fxcm.com .
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.Learn forex trading with a free practice account and trading charts from FXCM.
Source: Daily fx
