EUR/USD, EUR/GBP and USD/CAD stabilise as US debt ceiling bill goes to Senate
Outlook on EUR/USD, EUR/GBP and USD/CAD as the House of Representatives passes the debt ceiling bill.
EUR/USD hovers above its two-month low as German retail sales disappoint
EUR/USD's decline has taken it to a new two-month low at $1.0636 on Wednesday on flight-to-safety flows into the US dollar.
The ongoing US debt ceiling spectacle, which is finally coming to an end with the bill almost certainly becoming law within days, pushed the EUR/USD cross lower as the euro remains under pressure as Germany’s June retail sales disappoint.
The currency pair is thus slipping back towards Wednesday’s low at $1.0636, below which the January-to-March lows and 200-day simple moving average (SMA) can be spotted at $1.0516 to $1.0484. The May downtrend line at $1.0715 caps for now.
EUR/GBP slips to five-month low despite UK house price fall
EUR/GBP's slide to levels last traded in December of last year, so far to £0.8584, has been precipitated by Germany officially entering a recession last week and weaker-than-expected retail sales data out earlier on Thursday.
Despite the Nationwide UK house price index dropping by the most since 2009, the currency pair remains under pressure as the euro depreciates further than the British pound.
Major support lies between the September-to-December lows at £0.8572 to £0.8548 which is expected to hold when revisited.
USD/CAD once more falters close to its April peak
USD/CAD advance on a stronger greenback, due to flight-to-quality flows on the back of the ongoing US debt ceiling saga, once more ran out of steam slightly below its C$1.3668 late April peak on Wednesday when the US House of Representatives passed the bill.
A slide back to the mid-May high at C$1.3568 has thus occurred. Below Thursday’s C$1.3561 intraday low, more significant support can be spotted between the 10 April high and 55-day SMA at C$1.3553 to C$1.3532, now that the one-month uptrend line at C$1.359 has been slipped through.
This, because of inverse polarity, should now act as minor resistance.
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