The euro, and indeed the pound sterling, have now recovered earlier losses against the US dollar following a poor economic release in the US. The euro (Currency:EUR) is looking solid as we move into the afternoon trading session in London: The euro dollar exchange rate is 0.18 pct higher at 1.3225. The euro pound exchange rate is 0.2 pct higher on Wednesday's closing rate and is now at 0.8637. The euro Australian dollar rate is 0.13 pct lower at 1.4394. NB: These are spot market rates to which your bank will charge their own discretionary spread. However, an independent FX provider will guarantee to undercut your bank's offer, thereby delivering you more currency. Please learn more. There is a good degree of action on the currency markets at present; we see the US dollar has taken a knock in the wake of less than inspiring economic data just released. Worrying the US dollar is news that US jobless claims rose to 343,000 (consensus 340,000), higher than the 336,000 in the previous week. The jobs data has trounced news that durable goods, ex transportation, were flat in June while capital goods non-defence ex aircraft orders were up a respectable 0.7% last month. The disappointing job numbers could however be a blip as Yelena Shulyatyeva at BNP Paribas says: "The labor market conditions are improving modestly. We are seeing a big disconnect between growth in the labor market and the economy overall. The economy is slowing down while the labor market is holding up." This realistation would explain a recent retracement in EUR/USD. Commenting on trade in the euro / dollar exchange rate are FXStreet who see the following key levels: "At the moment the pair is up 0.26% at 1.3235 with the next resistance at 1.3256 (high Jul.24) ahead of 1.3261 (76.4% of 1.3417-1.2755) and then 1.3302 (high Jun.20). On the downside, a breach of 1.3177 (low. Jul.24) would open the door to 1.3164 (low Jul.23) and finally 1.3150 (MA10d)." In response to today's British pound losses which come in the wake of on-target GDP data, we see the GBP/EUR has been forecasted lower (EUR/GBP higher) by analysts at Trading Central: "Our preference: Long positions above 0.858 with targets @ 0.8645 & 0.8675 in extension. "Alternative scenario: Below 0.858 look for further downside with 0.8555 & 0.8525 as targets." Also under pressure is the GBP/USD: "Our preference: Short positions below 1.539 with targets @ 1.5265 & 1.522 in extension. "Alternative scenario: Above 1.539 look for further upside with 1.543 & 1.5475 as targets."

Source