The Euro remains strong despite Draghi’s Speech
The pairing EUR/USD continued to remain strong throughout the Asian session and all gains were seen in favor of the Euro due to the release of positive manufacturing PMI data. It slightly fail yesterday before Dovish Draghi’s Speech and in today’s session it recovered from its losses.
Today, they could be an upward bias in the pair after the release data of Michigan Consumer Sentiment and Michigan Consumer Expectations that will be released later in the afternoon. Despite these pieces of data, the pair has a strong effect on the markets with its support levels at at 1.3800 and resistance at 1.3850.
The data release of New Home Sales and Flash Manufacturing PMI came in US came out disappointing then expected and this also caused the Euro to strengthen against the dollar.
The USD/JPY continued to range in the absence of important data but it is expected to respond to the US data release that may show signs of strong movement. The inflation data released yesterday may also weigh down on the yen and this may result in a significant increase against the dollar. Meanwhile, the pair has a support level of 102.20 and its level resistance at 106.65.
Investors will also wait for the data release of German’s business climate (German ifo Business Climate) and if the data is positive giving higher expectations this will certainly strengthen the euro.