Jan. 31: American session
Strengthening of the dollar continues. Today EUR / USD pair continued to fall, after the evidence of a decrease in the euro zone CPI last month to 0.7% . Analysts had forecast an increase to 0.9% from 0.8% . Reinforced the bearish pressure and positive statistics from the U.S.. Thus, the value of labor force increased to 0.5% from 0.4 %. Index of personal spending Americans was also better than expected specialists . A little later, it was announced on the growth of business activity and consumer sentiment University of Michigan . All this contributed to the depreciation of the currency pair to 1.3480 level . Currently bidding process continues at a session low . GBP / USD is also under pressure from the sellers. Bears once again stormed the 1.6445 support , which is held the day before .
USD / CHF has today updates highs , recovering to around 0.9060 . Note that there is a very strong resistance , which can make the buyers to fix some of their positions. The yen strengthened again today against the dollar. USD / JPY pair dropped to the recent support of 102.00 and is trading slightly higher in the area of 102.10 . Short-term bearish trend is gaining momentum.
Commodity currencies have fallen sharply today after a series of negative data of a fundamental nature . So , the Bears took advantage of unexpectedly sharp decline in the producer price index in Australia , resulting in the pair AUD / USD dropped to lows of five days old - 0.8700 . Couple groped support here and now corrected in 0.8730 . Growth of the trade deficit contributed to New Zealand powerful sales currency pair NZD / USD, which from its inception has fallen more than 100 pips to the 0.8060 level . This is a new low this year. Bearish sentiment persist despite corrective recovery towards 0.8100 figure .
The Canadian dollar began to strengthen sharply after data on GDP. But before this currency pair USD / CAD has set a new high in the 1.1225 area . Now trading is at a session low , just below the 1.1150 support .
Tatiana Norkina , an analyst at FBS