Dollar Hits Lows Against Yen Amid German Economic Concerns and AFD Victory
The US dollar has tested new lows against the Japanese yen in recent market activity. According to analysis, the EUR/USD pair gained some ground despite a disappointing Industrial Production report from Germany, which showed a decrease of -1.1% month-over-month in July compared to an analyst forecast of +0.1%. The German economy's industrial output has been a significant concern for investors and economists, but the EUR/USD remained relatively stable.
Meanwhile, elections in Germany's Saxony-Anhalt ended with a massive win for the anti-immigration Alternative for Germany party, which reached its best result ever. While this outcome is likely to raise concerns about the party's potential success at a federal level, analysts believe it will have limited impact on the European currency in the near term.
The EUR/USD is expected to continue its upward trend if it stays above the 1.1615 level, potentially reaching the next resistance range of 1.1685-1.1700. On the other hand, the GBP/USD has been testing resistance at the 1.3550-1.3565 levels.