EUR the strongest. NZD the weakest.
The EUR is benefiting today from the better CPI estimate (YoY -0.3% vs -0.4% estimate. The core remained unchanged at +0.6%). The Markit eurozone manufacturing PMI came in at 51.0 vs 51.1 last month. The Unemployment rate fell to 11.2% from 11.4%, the lowest level since April 2012.
More favorable technicals have helped as well with the EURGBP and the EURUSD benefiting from a trend like move higher today. Looking at the EURGBP, trend line resistance on the hourly chart was broken at the 0.7270 level (see chart below). The price is now testing the high from Friday and the 100 hour MA at the 0.7294/96 area. Key level.
The weakest currency today, has been one of the strongest currencies of late. The NZD is the weakest currency in trading today. The surprise rate cut China over the weekend was thought to be a benefit to the NZD and AUD. Instead, those currencies went lower as little upside momentum was found. The surprise cut may be indicative of more weakness to come. The EURNZD is the largest mover. Looking at the chart below, the lower trend line was breached on the opening. When there was no downside momentum the pair started to begin a correction higher (EUR stronger/NZD weaker). The pair has been more bearish of late. The action today is more corrective. The 38.2% retracement of the move down last week and the 100 hour MA are upside targets (blue line in the chart below).
