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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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USD trades lower Chinese manufacturing lifts risk

Article By: ,  Financial Analyst
June 23, 2014 11:16 AM

USD is trading lower across the board this morning following the release of the HSBC manufacturing PMI reading for June, which came in at a seven-month high at 50.8 from 49.4 in May.

The details of this report showed that strength was broad based across the manufacturing sector as analysts sighted that the relatively small lending stimulus initiatives that the Chinese Government have undertaken recently have buoyed the Chinese economy.

As you’d expect, the main beneficiaries to the stronger data have been the CNH, AUD, NZD and CAD – with the latter adding further gains against the greenback following a strong domestic reading in Canada on Friday. The latest inflation reading revealed a 0.5% month-on-month increase, taking the yearly headline reading to 2.3%.

In other news, geographic concerns remain elevated in Iraq as media reports suggest that ISIS have taken control of some major westerns borders and the US suggests air strikes are an option as they look to address the unrest.

The proud pound trades back to 2009 highs as MPC member, David Miles, signals rate normalisation is likely to start in his final year at the old lady (BoE). He cited a UK recovery becoming entrenched, although added that the stimulus of low rates doesn’t need to be removed just yet because slacks in the economy are still present as low wage settlements remain.

Today the attention will continue to focus on PMI data from Europe and the US.

 

EUR/USD

Supports 1.3580-1.3550-1.3505 | Resistance 1.3625-1.3650-1.33675

 

USD/JPY

Supports 101.65-101.40-100.75 | Resistance 102.15-102.50-102.85

 



GBP/USD

Supports 1.7005-1.6970-1.6925 | Resistance 1.7055-1.7100-1.7140

 

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