The cross rate with the GBP is trading around 0.5150, but could slip further as interest rate differentials expand and tougher UK budget conditions prevail. The UK Government has promised higher taxes and spending cuts, which does not bode well for the near future. Manufacturing PMI data did show signs of improvement and a stronger economic cycle, could brighten future prospects.
Current Level: 0.5155
Support: 0.5100
Resistance: 0.5300
Last week’s range: 0.5119- 0.5178