Analyzes

The Euro has continued to slowly weaken against the US Dollar, but momentum is slowing and a bullish breakout above the resistance at $1.1856 might be on the cards.

Gold markets are trying to find buyers after what has been a brutal round of selling again on Tuesday. At this point, the markets are continuing to struggle overall.

The USD/JPY pair attracts fresh buyers following the previous day’s good two-way price swings and sticks to intraday gains near the 153.70 region through the first half of the European session on Wednesday.

EUR/USD stays on the backfoot early Wednesday and trades below 1.1850 after closing virtually unchanged on Tuesday. The pair’s technical outlook suggests that the bearish bias stays intact in the short term following the latest recovery attempt.

The GBP/USD pair retreated after the UK published a weak jobs report, which raised the possibility of more Bank of England interest rate cuts this year. It dropped to 1.3556, down substantially from the year-to-date high of 1.3870 as investors focus on the upcoming inflation report.

The FTSE 100 rallied again on Tuesday, as the markets are digesting, the employment numbers being worse than expected. As this could have the Bank of England could be forced to cut, stock traders are happy.