EUR/USD stalls while GBP/USD and USD/JPY push higher
Outlook on EUR/USD, GBP/USD and USD/JPY amid recovering US yields.
EUR/USD range bound below its four-month high
EUR/USD continues to trade in low volatility and volume as US market participants are mainly absent due to the prolonged Thanksgiving holiday.
The cross still has the $1.0945 late August high in its sights, a rise above which would open the way for its four-month high at $1.0965 to be reached. Further up lie the late June high at $1.1012 and the August peak at $1.1065.
A bullish run will remain the most likely scenario as long as Wednesday’s low at $1.0853 underpins. Minor support below that low comes in around the $1.0834 July low and the 200-day simple moving average (SMA) at $1.0812.
GBP/USD rises on improving UK consumer confidence
GBP/USD is closing in on this week’s high at $1.257 as GfK consumer confidence for November comes in better-than-expected at -24 versus -30 in October. A rise above $1.257 will likely target the mid-August low at $1.2617.
The current upside momentum should prevail while Wednesday’s low and the 200-day SMA at $1.2455 to $1.245 underpin. Only a currently unexpected drop through this support zone would engage the early November high at $1.2428.
USD/JPY recovery is ongoing
USD/JPY’s swift descent from marginally below its October 2022 peak at ¥151.95 to this week’s ¥147.16 low has been followed by a bounce back to Wednesday’s ¥149.75 high which remains in sight.
With Japan’s October month-on-month (MoM) inflation seeing its highest jump in a decade by 0.7% and year-on-year (YoY) inflation rising to 3.3% while US yields are bouncing back, USD/JPY is likely to head back up again.
A rise above ¥149.75 would eye the early October peak at ¥150.16. Further potential minor resistance can be spotted at the 26 October high at ¥150.78. Minor support below the 55-day SMA at ¥149.37 can be found at the late October low at ¥148.81.
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