EUR/USD defends gains above 1.0900

The shared currency extends its overnight gains and remains supported versus the American dollar in the early European trades, keeping EUR/USD near session highs above 1.09 handle. The major remains lifted amid broad USD softness while Greece headlines stating that a deal is almost crafted also keeps the euro underpinned.

EUR/USD rises from 1.0890
The EUR/USD pair trades 0.15% at 1.0924 fresh session highs. EUR/USD keeps gains this session, extending its recovery from last US session, following headlines saying that Greece and its foreign lenders have started crafting a staff level deal.

"At the Brussels Group today procedures to draw up a staff-level agreement are beginning," a Greek source told Reuters on Wednesday.

More so, the US dollar has erased early gains from Asia and turned negative against its major competitors, adding to the gains in the EUR/USD pair.

Meanwhile, markets now on US macro releases due to be published later today for further momentum amid a data-dry EUR calendar.

EUR/USD Technical Levels
The pair has an immediate resistance at 1.0928 (April 27 High) levels, above which gains could be extended to 1.0984 (May 26 High) levels. On the flip side, support is seen at 1.0890 (Today’s Low) below which it could extend losses to 1.0862 (May 26 Low) levels.

News Source: FX Street

USD/JPY seen at 127.00 in 12-month

The pair could be headed towards the target level at 127.00 within the next 12-month, suggested analysts at Danske Bank.

Key Quotes
“USD/JPY continued its course north and broke above 124 last night”.

“Once again, price actions suggest that the main driver behind yesterday’s rally probably was stops being triggered”.

“We have called for another leg higher in USD/JPY driven by renewed USD strength and higher US interest rates with a 3M target of 125”.

“This scenario is likely unfolding right now even though relative rates only can explain very little of the recent days movement in FX spot”.

“Given that the Fed hike theme is likely to continue to develop over the summer and we still forecast significantly higher US interest rates in the coming months, risks remain skewed towards USD/JPY reaching and possibly overshooting our 12M forecast of 127 in the short term”.

“Longer term we still expect the cross to stabilise again on a 6M to 12M horizon as it becomes clear that BoJ will not ease further and as the support to the USD stemming from higher US interest rates should fade after the first Fed Funds hike in September”.

News Source: FX Street

GBP/USD rises to fresh session high of 1.5384

The bid tone on the GBP strengthened further in anticipation of an upbeat UK first quarter GDP report, thereby pushing the GBP/USD pair to a fresh session high of 1.5384 levels.

Focus on UK GDP
The UK economy is seen expanding 2.5% year-on-year in Q1, compared to the previous figure of 2.4%, while quarter-on-quarter the GDP is seen rising 0.4%, compared to the previous figure of 0.3%.

The expectations of an upbeat data helped the GBP/USD pair recover from the previous session’s low of 1.5330. Part of the recovery was also due to a broad based weakness in the USD triggered by a correction in the USD/JPY pair.

GBP/USD Technical Levels
The immediate resistance is located at 1.5398 (200-DMA), above which the pair could rise to 1.5430. On the flip side, a break below 1.5376 could drive the pair lower to 1.5330.

News Source: FX Street