Daily Commentary

EUR/USD- As I said yesterday, we saw a lot of movement in euro dollar as expected after the ECB press conference today. After the rates were cut down to 0.15% from 0.25%, we saw a big move on the downside dropping to lows of 1.35028, but considering the fact that the rate cuts were already priced in, it was expected to be a reading of 0.10%. So in comparison to what was expected, it was a good reading, so very soon after (around 2 hours) we saw a huge move that was on the upside reaching 1.36695. So wrapping today’s move up, it move up only around 60 pips. The rest of the move may have been confusion and people making decisions before looking into what the actual effects of this will be.

GBP/USD- A nice big move on the upside from cable, which was expected after the consistent selling of the pair has been present. After the interest rates in the UK remained at 0.50%, this strengthened the pound against the dollar but this was not the only thing that would have accounted for the move. As I said before after all this selling of cable recently, it dropped into the oversold region and has started its climb on the upside. With the pair stalling around some previous congestion at 1.681349, and the pair still bouncing off of the 100 EMA on the daily charts, a potential further move up may occur, although this all depends of some more big data out tomorrow in the US, this being the longed for NFP readings.

AUD/USD- Aussie following cable on the upside, it seems to be that the dollar has weakened a fair amount today. This is on the back of what has gone on with the euro, the fact that what was expected already being priced in, the actual results turned out to be good. With EUR/USD being the most liquid currency, when the euro strengthens the dollar weakens. Another thing to take into account is that with the NFP tomorrow, dollar weakening doesn’t come as much of a surprise. Aussie dollar breaking recent highs of 0.93288, and 3 EMA cross overs on the H1, the move on the upside after the selling is clearly underway.

GOLD- A big leap on the upside from gold after the weakening of the dollar, making essentially its entire move in one hour. With the massive plunge in recent days, like cable, this did not come as a surprise as it has been looking oversold for a while. NFP tomorrow so if the number is not looking so good a further move up could occur.