May 15: American session
Tatiana Norkina , an analyst at FBS
Weak data on Europe contributed to the weakening of EUR exchange rate against the U.S. dollar today. During the day the dollar index recovered to 80.40. However, the decline in industrial production in the U.S. last month ( -0.6 % vs. +0.1% ) had a very negative impact on the market: the U.S. dollar index fell into the red zone and currently lost approximately 0.03 %. Trading has opened with a sharp decline on major U.S. stock markets as well, which are currently losing about 1.0 %.
In the currency markets volatility has increased. The EUR/USD collapsed to 1.3650 today, where the strong support is, but got back to the morning levels of 1.3715 at the beginning of the U.S. session. Currency pair USD/CHF has set a new maximum at 0.8960, however, trading is on 0.8900 support now. GBP/USD pair tested support around 1.6730, but the prices rebounded to 1.6800 figure with the arrival of American players. USD/JPY continued to fall after the bulls were unable to break above 102.00 resistance. Now bears reduced the currency pair rate to around 102.30 and obviously it's not the end of the movement.