USD Adds Pips, GBP Slips, EUR Tracks PMIs

Tuesday brings more good news for both bulls and bears. In focus, we have the USD moving up, GBP slipping down and EUR moved by final Eurozone PMIs.

USD Updates, EUR Tracks PMIs

On Tuesday, the US dollar index, which measures the USD strength against a basket of six major trade-weighted currencies, rose slightly as hopes for significant US tax cuts underpin demand for the greenback, rising to 93.22 and gaining 0.18%.

Following the Senate’s veto on a tax overhaul package over the weekend, the USD went slightly up on Monday, hitting 112.498 (close) against the JPY.

As a positive sentiment revolves around the dollar and the corporate tax cuts that will hopefully give the US economy a boost and push the Treasury yields higher, EURUSD lost nearly 0.13%, moving down to 1.18679 (open) on Tuesday morning.

Investors are equally mindful of the fervent activity at the White House as the Republicans plan to pass over to the Senate a final tax bill before Christmas and the Eurozone final PMIs soon to be released for more impetus in both the EUR and the USD.

Sensitive to the economic data ahead, EURUSD trades now around 1.18663, approaching the first level of resistance at 1.1889. By comparison, USDJPY hovers above the 112.504 handle. Some resistance is to be expected around 112.77(R1), 113.13(R2) and 113.36(R3).

GBP Slips on Brexit Hotchpotch

As the UK and the EU did not shake hands on a reasonable-for-both-divorcees bill, the GBP shed pips, going down about 0.71% against the USD, slipping to 1.34135. The pair seems to be targeting 1.3443(S1).

EURGBP gained about 0.61%, moving up to 0.88423 on the live chart, following an open at 0.88080. The single currency seems to gain pace against a weakened-by-failed-Brexit-talks Sterling.

Moving to the exotic side of the Commonwealth, the Aussie gained pace against the USD, boosted by strong domestic sales data. AUDUSD opened today at 0.76034 and follows an upward trend, hovering above 0.76417 on the live chart, with an eye to S2 at 0.7627. AUD was hardly moved by the Reserve Bank of Australia’s decision to keep rates low at 1.5%.

Following RBNZ Governor Spenser’s speech, Kiwi followed the Aussie, moving up nearly 0.25% to 0.68860 (open) against the buck. NZDUSD trades now around 0.68915.