EURUSD and GBPUSD hit new lows this year
Looking at the EURUSD chart on the daily timeframe, we can see that the pair broke below the support line at 1.16500 yesterday. The pair also broke the 1.16000 support and we are now at 1.15700 and the last time we were at this location was last July. Downward pressure remains and we can expect the EURUSD to continue falling to a psychological level of 1.15000. Below this support we can look for further support around the 1.14000 zone, a break from the previous bullish trend. We need new positive consolidation and growth of EURUSD above 1.17000 and a break above the upper resistance level for the uptrend.
GBPUSD chart analysis
Looking at the GBPUSD chart on the daily timeframe, we see that the pair has fallen to this year’s low of 1.34100. After hitting a maximum of 1.42500, the pair steadily depreciated and fell to its current level. If the downward pressure continues, we can easily see further decline to even lower levels this year. For the bullish scenario, we need a positive consolidation that would steer us to the bullish side. Our resistance is the first in the previous 1.36000 support zone; after that, our next resistances are on average in the 1.37000-1.38000 zone.
House price inflation in the UK fell more than expected in September, but stayed in double digits for the fifth straight month, according to results of a National Building Society poll on Thursday.
The property price index rose 10 percent year-over-year after rising 11.0 percent in August. Economists forecast a result of 10.7 percent. The latest inflation rate is the lowest since April when it was 7.1 percent.
Compared to the previous month, house prices rose by 0.1 percent in September, after 2.0 percent in August. Economists are forecasting an increase of 0.6 percent.
Demand is also expected to weaken towards the end of the year as unemployment rises as government support dwindles, which is likely, the economist said.
The UK economy grew faster than originally anticipated in the second quarter due to heavy spending, revised data from the Bureau of National Statistics showed on Thursday.
As a result, the gross domestic product grew by 5.5 percent instead of the previously estimated growth of 4.8 percent. The growth compensated for a decline of 1.4 percent in the first quarter.
The GDP level was now 3.3 percent lower than before the pandemic at the end of 2019, revised from the previous estimate of 4.4 percent.
Manufacturing in China was stable in September; The latest Caixin poll on Thursday found a PMI of 50.0. That exceeded expectations for a result of 49.5 and was higher in August at 49.2. It moves out of the contraction area and straight to the line that separates the spread from the contraction.
The higher number of stock indices was partly due to a renewed increase in total sales in September. Though easy, it was the first time in three months that a new job had picked up. Baseline data suggests this was primarily driven by more robust domestic demand as export sales fell. Several companies have been positive about improving customer growth.
EURUSD and GBPUSD at new lows this year first appeared on FinanceBrokerage.