EUR/GBP, USD/JPY and USD/CNH rise as US yields surge causes greenback appreciation
Outlook on EUR/GBP, USD/JPY and USD/CNH amid the ongoing Israel/Hamas crisis, rallying US yields, a stronger US dollar and weak China housing market.
EUR/GBP approaches key resistance
EUR/GBP’s ascent from its £0.8617 11 October low, despite UK inflation remaining stubbornly high and London having just regained its crown as Europe’s largest stock market, is about to hit the 200-day simple moving average (SMA) at £0.8698. It sits slightly below the £0.8701 to £0.8706 key resistance area, made up of the mid-July and September peaks which are expected to at least short-term cap once more.
The immediately bullish picture will remain in play while Wednesday’s low at £0.8661 holds.
Below it lies solid support between the late-August high, late-September low and last week’s low at £0.8631 to £0.861.
USD/JPY nears the psychological ¥150.00 mark
USD/JPY approaches the psychological ¥150.00 mark despite the heightened risk of Bank of Japan (BoJ) currency intervention as the green back appreciates on the back of rallying US yields which have risen to 2006 and 2007 highs.
Above ¥150.00 lies the early-October high at ¥150.16.
Support can be spotted along the July-to-October tentative uptrend line at ¥149.24. While the next lower 17 October low at ¥148.85 underpins, the uptrend remains intact.
USD/CNH continues its gradual advance
USD/CNH’s gradual advance as China’s new home prices drop for a third straight month as demand remains sluggish despite its government trying to prop up its ailing property market has taken it towards its CN¥7.3316 early-October high.
A rise above the CN¥7.3316 level would indicate that the cross is leaving its mid-September-to-October sideways trading range with the August and September highs at CN¥7.3497 to CN¥7.3681 then being eyed.
Minor support can be made out at Wednesday’s CN¥7.3047 low ahead of the 55-day SMA and the July-to-October uptrend line and the late-September low at CN¥7.2955 to CN¥7.2811.
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