EUR/JPY attempts a mild rebound following Wednesday’s drop.The August top at 138.39 caps the upside for the time being.EUR/JPY bounces off weekly lows in the 136.60/50 band and reclaims part of the ground lost on Wednesday’s strong retracement.
So far, the August recovery appears to have met some initial resistance in the 138.40 zone (August 10). If the cross regains upside traction and surpasses this level, it could then extend the move to, initially, the 55-day SMAs, today at 139.06.
While above the 200-day SMA at 133.87, the outlook for the cross is expected to remain constructive. This contention zone also appears underpinned by the proximity of the August low at 133.39 (August 2).
EUR/USD rises toward 1.0350 after soft PPI data
EUR/USD has edged higher toward 1.0350 in the early American session on Thursday. The data published by the US Bureau of Labor Statistics showed that the annual PPI declined to 9.8% in July from 11.3% in June, coming in lower than the market expectation of 10.4%.
GBP/USD turns positive on the day above 1.2200
GBP/USD has regained its traction and turned positive on the day near 1.2240 in the second half of the day on Thursday. The softer than expected producer inflation data from the US seems to be weighing on the dollar and allowing the pair to stretch higher.
Gold struggles to gather momentum, holds above $1,790
Gold is having a difficult time gathering bullish momentum on Thursday. With the 10-year US Treasury bond yield losing more than 1% after soft PPI data from the US, however, XAU/USD manages to hold in positive territory above $1,790.