Services SURPRISE!
Services SURPRISE!
The leap from contraction to posting growth in April’s US services sector performance opposed all expectations, 52.0 is a strong leap from 49.6 recorded and the deepened contraction expected. The market was steady since morning and gradually gaining losses against greenback until it came back and did so with glamour.
The euro was steadily rising since the morning is narrow ranges to set the high at 1.5499 as the resistance combined with low momentum held the euro from breaching higher, the American session fluctuated until the release of the data to take the euro to set a fresh intraday low at 1.5426 the euro is now trading near yet breaching the 1.5420s will extend the downside wave though highly unlikely as the euro lacks moving momentum and as well is anticipating the steady rates and hawkish comments from Trichet this Thursday.
UK markets are celebrating the National Holiday and are out, and with light volume of trade and a foggy interest rate expectations for this week’s decision the pound continued the bearish wave sliding from the peak at 1.9780s which the pound couldn’t breach higher to as low as 1.9656, still the 1.9640s present good support for the pound and will hold sterling from continuing the downside wave and if fails still the 19620s remains valid.
The USDJPY is still consolidating among tight ranges, the downside bias was seen early on in trading hours for the pair to set the low at 104.98 yet the strong support held the dollar strong to continue collecting its gains, and with the strength it acquired from the service performance the pair hit a fresh high for the day at 105.62 while still the pair needs to trade well above 105.70s to continue the upside or else will remain to consolidate among seen today ranges, the pair is flat out back to trade at opening levels and if so would be confirmation for the forming of a stronger reversal pattern to the downside unless the dollar takes the pair higher into 106.00s.
Crown Forex
disclaimer:The above may contain information for investors/traders and is not a recommendation to buy or sell currencies, gold, silver & energies, nor an offer to buy or sell currencies, gold, silver & energies. The information provided is obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. I am not liable for any losses or damages, monetary or otherwise that result. I recommend that anyone trading currencies, gold, silver & energies should do so with caution and consult with a broker before doing so. Prior performance may not be indicative of future performance. Currencies, gold, silver &energies presented should be considered speculative with a high degree of volatility and risk.
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