29 Apr 2014
Session recap: Pills for the Euro and Pound; USD/JPY bounces back
FXStreet (San Francisco) - News that Pfizer is in talks to buy Astrazeneca for $100 billion fueled buying interest in the Euro and the Pound earlier in the day. It drove the EUR/USD and the GBP/USD to fresh highs; however gains weren't strong enough and pairs returned to previous levels.
The risk-on was fed by better than expected US housing data and news that Russian troops had returned to their bases; US stocks rallied on big cap shares appetite; that pushed the USD/JPY higher too.
The EUR/USD jumped to fresh 3-week high of 1.3880 early in the Europe session; however the pair declined to 1.3838 on pro-dollar environment with the US opening bell. Then, the pair priced sideways around 1.3850.
"Hourly chart shows price recovering above a bullish 20 SMA, while indicators also head higher above their midlines, supportive of the current bullish tone," comments FXStreet chief analyst Valeria Bednarik. "The upside however remains favored with scope for an advance up to 1.3920 in the near term."
The GBP/USD jumped to 1.6856, highest since November 2009 where the pair found selling interest and fell to 1.6800 in the American morning. Cable closed at 1.6810.
The USD/JPY advanced after 3 negative days as the pair jumped to price above 102.50. The tone mild positive after closing the day at 102.45. Japan will be on holiday on Tuesday.
Main headlines in the American session
US pending home sales rise 3.4% in March, fall 7.9% y/y
Dallas Fed manufacturing index +11.7 vs +6.0 expected
Wall Street closes mixed to mostly upside on swing day
The risk-on was fed by better than expected US housing data and news that Russian troops had returned to their bases; US stocks rallied on big cap shares appetite; that pushed the USD/JPY higher too.
The EUR/USD jumped to fresh 3-week high of 1.3880 early in the Europe session; however the pair declined to 1.3838 on pro-dollar environment with the US opening bell. Then, the pair priced sideways around 1.3850.
"Hourly chart shows price recovering above a bullish 20 SMA, while indicators also head higher above their midlines, supportive of the current bullish tone," comments FXStreet chief analyst Valeria Bednarik. "The upside however remains favored with scope for an advance up to 1.3920 in the near term."
The GBP/USD jumped to 1.6856, highest since November 2009 where the pair found selling interest and fell to 1.6800 in the American morning. Cable closed at 1.6810.
The USD/JPY advanced after 3 negative days as the pair jumped to price above 102.50. The tone mild positive after closing the day at 102.45. Japan will be on holiday on Tuesday.
Main headlines in the American session
US pending home sales rise 3.4% in March, fall 7.9% y/y
Dallas Fed manufacturing index +11.7 vs +6.0 expected
Wall Street closes mixed to mostly upside on swing day