The Pound Trades Lower Against the Dollar after the U.K. releases data on Industrial Production.
With the United Kingdom reporting lower industrial production figures this week, the British Pound fell relative to the U.S. Dollar. The expectation among stakeholders had been that production would remain at least steady, but the drop was more significant than last month, and fell to -1.7%. Even so, with turmoil still racking the EU, the Pound rose against the Euro. Not so versus the Japanese Yen, where the Pound lost 0.91%.
Friday’s low, the pair was likely to find support at 1.6232, and resistance at 1.6473, for Tuesday.
The Euro Continues to Tumble trading at 1.4348, down 1.11% after the U.S. released its data on the Federal Budget Balance.
The economic situation in Greece still haunts the Euro. Speculation between the European Central Bank and Germany, the zone’s largest economy, about how private banks should participate in a second round bail-out leaves analysts in doubt about how a final agreement will be reached, and when. The predictable result of uncertainty in the markets is normally a loss of value to the currency and this is no exception. The Euro lost 1.11% versus the U.S. Dollar.
Friday’s low, the pair was likely to find support at 1.4323, and resistance at 1.4696, for Tuesday.
The U.S. Dollar Continues to Trade Higher Against the Swiss Franc. The pair traded at 0.8361, up 0.01%.
Although data reported by U.S. didn’t have much effect on investors, the U.S. Dollar still traded higher against the Swiss Franc. It appears that there is more interest in expected comments from the Chairman of the U.S. Federal Reserve than official government data. Reports from the Swiss economy showed inflation inching up for the month of May, giving some pause to the possibility of an increase in rates. At the same time, continued poor results from the U.S. will undoubtedly result in downward pressure on the Dollar.
Tuesday’s low, the pair was likely to find support at 0.8328 with the key resistance at 0.8391, for Friday.
The USD/Yen Pair Closes with Losses trading at 80.36, up 0.001%, as of Friday.
The Japanese Yen rose against the U.S. Dollar as reports from the U.S. show a continuing lag in growth of that economy. Even though U.S. agencies and official statements professed an expectation of more robust growth in the second half of the year, investors remain reticent about the short-term future of the U.S. recovery, and thus, the future of global economic growth, as well. The Japanese economy, facing massive demands for recovery of the devastating losses suffered due to the recent earthquake there oddly enjoys a safe haven status as investors sense a need for repatriation of Yen to finance reconstruction. Thus, the Dollar, while gaining against most of its competing currencies, did not do so versus the Yen.