The British pound climbed against majors after a report showing that unemployment in the 3 months ending in May slipped to 7.8% from 7.9% and jobless claims dropped by 20,800 in June, confirming the improvement signaled recently by the economy.
As for the sterling-dollar pair, it spiked to 1.5276, where it is facing strong resistance at that level, to a high of 1.5289, to continue the upside trend that started since mid May. Today's data enhanced the sterling especially as the breakout of strong resistance at 1.5055 yesterday paved the way for the pair to incline to highest level in more than 60 days against the green currency. The pair recorded a low of 1.5167 earlier today, while it is expected to move between support at 1.5200 and resistance at 1.5360.
With regard to the euro-dollar pair, it is traded close to the day's opening at 1.2707 after retesting the previously breached resistance that became support at 1.2690, where the euro is hovering around two-month high against the greenback. In the euro zone, industrial production showed expansion at 0.9% in May while annual CPI remained unchanged at 1.4% in June, yet investors are waiting for the release of banks tests results that if came satisfying may take the pair to 1.30 levels, as expected by some analysts. After recording a high of 1.2736 and a low of 1.2689, the pair is predicted to move between support and resistance at 1.2655 and 1.2760 respectively.
In General, risk appetite increased which enhanced demand on high-yielding currencies and risky assets. Most Asian and European shares advanced after Intel Corp. had posted revenue record and raised its profits estimates, while Singapore raised its full-year growth forecasts by nearly 15%.
The dollar, on the other hand, is showing slight decline against a basket of major currencies as reported by the dollar index which fell to 83.46 falling from a high of 83.69. Later on today, there will be FOMC meeting where policy makers are expected to keep interest rate at its current low level for a while to enhance recovery.
Relative to the dollar-yen pair, it fell on the daily charts risk aversion behavior eased, thereby damping demand on the yen as a refuge. Meanwhile, the pair is trading at 88.56, recording a high of 89.11 and a low of 88.52, whereas support is seen at 88.00 while resistance is at 89.15.