USD against major currencies - ICICI Bank : Treasury Research

GBP/USD: The Sterling is trading at 1.5182 levels after gaining 1.15% in the previous trading session. The currency though pared some of its gains after hitting an intraday high of 1.5222 yesterday on the accommodative policy stance signalled by the new BoE Governor in the policy meeting last week. The markets would watch for the minutes of the meeting due for release next week. The intra day trend for the GBP/USD cross is range bound, with support and resistance at 1.5150 and 1.5220 respectively.

USD/JPY: The Japanese Yen is trading at 99.04 levels after gaining 0.70% in the previous trading session, amidst a weak greenback. The currency though has pared some of its gains after hitting a high of 98.27 yesterday as the low inflation levels in the economy is likely to lead the Central Bank to continue with an ultra accommodative policy stance in the coming months. There has been an indication from the authorities that the consumption tax hike next year may be restricted to 1% as against the 3% expected. Meanwhile, the BoJ in its policy meeting yesterday maintained status quo and provided the most upbeat economic assessment in the last 2 ½ years and this provided some support to the currency. The intraday move though is likely to be range bound ahead of long Japanese weekend with markets closed on Monday. Technically, the intra day trend for USD/JPY cross is ranged with support at 98.40 and resistance at 99.50.

USD/CHF: USD/CHF is currently trading marginally lower at around 0.9466 compared to yesterday's close of 0.9570 amidst slight recovery in the Dollar this morning. Meanwhile, the EUR/CHF cross is also trading slightly lower at 1.2394 vs. yesterday's close of 1.2402 owing to improvement in global risk sentiment that is weighing on the safe-haven demand for the Franc. Technically, USD/CHF is expected to trade bearish with support at 0.9430 and resistance at 0.9488.

AUD/USD: The Australian Dollar is trading lower at around 0.9167 compared to yesterday's close of 0.9188 as weak employment data from Australia released yesterday added to expectations of rate cut by the RBA in the August policy meeting. The currency also remained under pressure as growth concerns in China headed higher though losses were limited amidst expectations of continued monetary stimulus by the Fed and BoJ. Technically, we expect AUD/USD to trade ranged with support at 0.9137 and resistance at 0.9200.

USD/CAD: The Canadian Dollar is currently trading little changed this morning around 1.0362 levels, albeit holding on around the 3-week high level amidst expectations of continued monetary accommodation in US, Canada's largest trading partner. However, the upside was capped amidst marginal decline in crude oil prices in early trade today. Technically, we expect USD/CAD to trade bearish with support at 1.0335 and resistance at 1.0393.

Source : Equity Bulls

Keywords