The EUR/USD hovered around seven-week highs this morning against the greenback as traders cut long positions in the Dollar amid rising concerns for the U.S. economic recovery. The Dollar fell yesterday against the Euro after an industry report showed that the U.S. non-manufacturing sector grew at a slower than expected pace in June. Moreover, the Euro’s rise was assisted by a strong reaction to a Spanish debt sale, as the unexpected demand eased investors concerns over the debt crisis in the Euro Zone.
Technically, the pair seems to be supported above 1.2560 by its 50-hour moving average, with many analysts proclaiming that there could be more upside potential for the European currency if it crosses above the $1.2660 level.
With no major impact news coming up today from the U.K., the Sterling is expected to follow the same direction as the Euro. Technically, the GBP/USD is well supported around the $1.5085 level; however, if the pair successfully crosses the $1.5160 mark, it could open the way for a re-attempt to breach the $1.5220 resistance level.
The Canadian Dollar rose for the first time in three days yesterday against its American counterpart after an advance in global equities and commodities pushed currencies ties to growth higher. The Canadian currency, nicknamed the Loonie, rose 1.4% yesterday, to C$1.0486 per U.S Dollar and closed at C$1.0634. With the Canadian Ivey PMI being the only piece of major impact news today, forex investors could see some substantial movement in the USD/CAD. Projections are for a stronger number, which is reflective of the recent view that the Canadian economy is on a solid path to recovery; however, any significant deviations from the projected figure could cause the Canadian dollar to rise or fall against its major counterparts.
Written by Finexo.com