Sterling fell after BoE announcement to increase asset purchasing program
The US dollar was mixed this morning trading higher in anticipation of jobless claim data and as investors evaluated virus news and central bank announcements. The Bank of England announced that the central bank would increase its asset buying program by 100 million pounds causing the British pound to trade lower.
June 18, 2020
EUR/USD 1.1220 GBP/USD 1.2429 USD/CAD 1.3583 AUD/USD 0.6854 USD/JPY 106.7800 USD/CNH 7.0823 USD/ILS 3.4563 USD/MXN 22.5002 USD/CHF 0.9513 USD/INR 76.1462
USDUS dollar gained ahead of jobless claims, moving slightly lower after the data was released. The data showed that jobless claim numbers are at 1508k vs. the expectation of 1290k.GBP
The Bank of England announced that it would boost its asset purchasing program by 100 billion pounds causing sterling to weaken. GBPUSD fell almost 1% and is trading around 1.2460.EUREURUSD is trading slightly lower hovering around the 1.1240 level. The next level of support is within the 1.1210-1.1200 range, levels of resistance are at the sessions high of 1.1261 and 1.1300.CADLoonie held firm ahead of US jobless claim release as oil prices remained firm and amidst signs of stronger demand despite news of virus outbreaks. USDCAD has since moved higher trading up toward 1.3580.ASIA/PACIFIC
USDJPY is trading below the 107 handle, hitting a low of 106.70. Data out of New Zealand showed that GDP fell 1.6% in Q1; NZDUSD is down slightly around 0.6451. Australian jobless rate increased to 7.1% vs. expectation of 6.9%; AUDUSD fell as much as 0.7% before reversing losses and trading 0.1% lower.
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