EUR / USD (Daily Trade)

In Thursday morning trading, the Euro continued its weakening against the US Dollar amid a rally in the dollar’s strength after US economic data that rose faster than anticipated for the past month raised investor expectations for stronger inflation, and also raised the prospect of a Fed rate hike.

During trading this morning, the US dollar index was observed rising 0.36% to 94.19. The index rebounded from the previous low of 93.

The US Department of Labor said that the producer price index for final demand increased by 0.3% last month.

In the 12 months to June, PPI rose 3.4% after rising 3.1% in May. This is the biggest annual increase in recent years, fueling expectations that the Fed could adopt a more aggressive stance on tightening monetary policy to control inflation.

The euro continued to weaken following reports the ECB members were divided in response to the decision to raise the central bank’s interest rates.

Some policymakers say the increase is likely to occur in early July 2019, while others suggest the move is not possible until the fall of next year.

The EUR / USD currency pair was down 0.33% to $ 1.1672 in trading. Meanwhile USD / JPY rose 0.83% to Y112.24 and USD / CHF rose 0.30% to 0.9923.

Elsewhere the GBP / USD pair fell 0.42% to $ 1.3196.

US-China trade worries are still in the spotlight on trade. The White House issued a further tariff plan on 10% of Chinese import tariffs of $ 200 billion which would be re-evaluated for effectiveness.

USD / CAD rose 0.26% to C $ 1.3148 after the Bank of Canada raised interest rates on Wednesday, and said it expected GDP to come in at 2.8% for the year.

remained flat at around 10.9 million barrels per day, EIA said. Cessation of production in Canada Syncrude which has the capacity to produce 350,000 bpd of oil continues to burden North American crude oil supplies.

Gasoline inventories fell 0.649 million barrels, missing expectations for a decline of 0.750 million barrels, while distillate supplies unexpectedly rose 4.125 million barrels, against expectations for an increase of 1,200 million barrels.

The oil inventory report was largely bullish and failed to lift sentiment amid investor concerns about increasing global supply as OPEC output increased last month, while Libya began resuming export activity, adding as much as 0.7 million bpd back to the market.

OPEC output rose above 32.3 million bpd in June, up 173,000 bpd from the previous month, according to OPEC’s monthly report. This increase was due to an increase in Saudi output to levels not seen since the output cut agreement in 2016.

OPEC, in its monthly report, said it expects the pace of growth in oil demand to slow, but it still increases 1.45 million barrels per day in 2019.

Technically

Resistance: 70.88 71.61 72.25 High / Low: 70.81 / 70.43

Support: 70.63 70.28 76.13 Running Price: 70.75

Comment: For today’s intraday trade suggest Buy at the level of 71.20 stop loss at the level of 70.80 target at the level of 71.80.