Good Morning Traders!
Early FX Outlook
The USD index is taking another hammering this morning as apart from the USD/JPY the dollar looses early ground against most currencies.
The EUR & GBP are gaining strong support as both Central Bank Leaders have expressed a hawkish tone towards interest rates hikes and growth outlook moving forward this year.
GBP looks set to push higher against the JPY and head towards monthly resistance level 148.000
EUR/JPY heads towards 130.500 resistance.
EUR/USD stays above key resistance 1.14000 but with US GDP data out today prices could push back below if data is positive.
GBP/USD heads towards 1.30500 resistance but its hard seeing the GBP push past this level unless the reality of a BOE rate hike starts to materialise.
EUR/GBP remains in between 0.88500 resistance and 0.87000 support.
Today we have US GDP data being released at 1:30pm and its important to remember that the FED is still intent on maintaining a gradual interest rate hiking process and given the weakness in the USD lately, if data comes in line with expectations we may see profit taking and some USD recovery against other pairs.
USD/JPY has broken 112.000 and is now heading towards 115:000 which suggests weakness against the EUR & GBP maybe short lived as USD/JPY is always a key indication of USD strength as JPY appreciates in times of USD uncertainty through Safehaven currency flows.
USD/CAD has reached 1.30000 support and if today's US GDP data is positive buying USD/CAD at this major support would be a good trade.