The euro remained in a short range against the U.S dollar all this week where the investor confidence remained there in the currency where technical levels kept the pair in the bullish zone. However, the pair failed to break its support and as well as resistance area of 1.3258 and 1.3330 respectively.
Pressure remained on the euro as the Eurozone’s industrial production contracted by 1.5% in August, while the concerns about the U.S military attack on Syria faded that caused the investors to stay put in long positions on the pair.
The unemployment rate dragged down to 7.7% just after Mr. Carney took his charge as the Governor of Bank of England from its previously recorded figure of 7.8%. Moreover the Claimant count change data was very impressive that immediately allowed the bulls to take over control of the pair, which let the bullish rally go on till Friday after breaking all its resistance levels. The pair closed at a multi-month high level of 1.5877 where traders may be expecting a timely bearish retracement earlier next week.
The Australian dollar kept its head up against the greenback this past week as the fundamentals from the Aussie economy inflated hopes in the currency. The home loans expanded by 2.4% and the consumer sentiment increased to 4.7% from its previous figure of 3.5%. Moreover the boost also came from the improved trade balance data from Chinese economy, which directly impacts the Australian economy.
However, the pair took bearish retracement on Thursday and Friday as the unemployment rate increased slightly due to more than expected layoffs in the month of August.
The USD lost against the major currencies earlier past week, and kept its bearish move as the core retail sales and as well as the consumer sentiment disappointed the investors.
However, the labor market showed major improvements where unemployment claims continued to fall that further added to the surety that the Federal Reserve would be opting to taper the quantitative easing plan this coming week.
The U.S dollar is expected to gain against the major currencies and of course gold, where it already has been preferred over the metal since USD is still the safe haven for majority of the investors.
To contact the reporter of this story: Jonathan Millet at email@example.com