Durable Goods Support Greenback

Daily Forex Fundamentals | Written by Crown Forex | Aug 27 08 13:38 GMT |

Earlier today investors were afraid that the anticipations of an expected upcoming rate hike on the greenback had left the markets since the durable goods were projected to come in worse than the prior reading but the readings came in better giving the dollar massive support in the markets. So once again the speculations of rate hike appeared back in the markets. Durable goods orders for the month of July came in at 1.3% inline with the previous revised reading and higher than the projected flat reading.

As the euro has been gaining in the markets, this all reversed as soon as the U.S. released its durable goods boosting the USD in the markets and downgrading the single currency once again. The EUR/USD is currently traded at 1.4739 while recording a high of 1.4775 and a low of 1.4644 as we see a resistance at 1.4745 and a support at 1.4700.

The pound returned to its normal deterioration state as it was only rising today because the dollar was weak. The royal currency is still under pressure as the UK economy is at a tip of a recession. The GBP/USD is currently traded at 1.8442 while recording a high of 1.8487 and a low of 1.8389. For the pair there is a resistance at 1.8500 and a support at 1.8385.

The markets went from unwinding of carry trades to normal carry trades while investors bought high yielding currencies and sold low yielding currencies, as the yen on the back of this falls. The yen could not break the support of 108.80 while now climbing to the resistance of 109.80. The USD/JPY is currently at 109.45 while recording a high of 109.67 and a low of 108.69.

Crown Forex

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