|Day's Range||1.017 - 1.017|
|52 Week Range||0.9776 - 1.0352|
It’s a busy day ahead on the economic calendar with GDP numbers out of the Eurozone likely to set the tone for Lagarde, who takes over as ECB President.
Based on the early price action and the current price at 98.890, the direction of the December U.S. Dollar Index the rest of the session on Wednesday is likely to be determined by trader reaction to the pivot at 99.005.
The SNB left its base rate unchanged while cutting growth and inflation view. In doing so, it said it “remains willing to intervene in the foreign exchange market as necessary.” The BOE surprised no one when it held its policy rate unchanged at 0.75% in a unanimous vote. The BOJ kept monetary policy on hold but hinted at possible action in October.
The Swiss National Bank on Thursday left its key policy rate and expansionary monetary policy unchanged, but said it "remains willing to intervene in the foreign exchange market as necessary." The central bank said it was also tweaking the basis for calculating negative interest rates on sight deposits -- deposits that can be quickly pulled out or without any notice -- at the SNB. The bank said its expansionary monetary policy is still needed owing to international developments and the country's inflation outlook. "Negative interest and the willingness to intervene are important in order to counteract the attractiveness of Swiss franc investments and thus ease pressure on the currency. In this way, the SNB stabilises price developments and supports economic activity," the bank said. Its conditional inflation forecast for the current year was lowered to 0.4% from 0.6% in the previous quarter, and its growth forecast was cut to between 0.5% and 1% for 2019 as a whole,compared to around 1.5% in June. The Swiss franc dropped 0.3% against the euro to 1.0968 francs, and fell 0.4% to 0.9928 franc versus the dollar.
Despite an adverse July Trade Balance data release, the Aussie pair bulls continued upliftment for the third day in a row. Meantime, Fiber kept the downtrend intact today.
Today’s USD breather has brought relief to many other currencies earlier under pressure. The euro is recovering, and the bulls’ resolution looks to be put to test shortly as the nearest resistance is at hand.
The AUD/USD pair has breached the upper boundary of the Bollinger Bands, showcasing a demand upsurge on the buyer side. Greenback bears ate the previously accumulated gains today amid downbeat economic data.
Today, the Aussie pair slipped out of the choppy bracket and was heading south. Meantime, the USD/CHF pair was testing the overhead Ichimoku Clouds.
The Fiber was underway to close negative for the third consecutive day this week in order to justify the 2-month-old downtrend channel. Meantime, the Aussie pair continued to remain choppy throughout the day.
Based on the early price action and the current price at 97.815, the direction of the September U.S. Dollar Index on Tuesday is likely to be determined by trader reaction to the pivot at .97.915.
Based on Friday’s price action and the close at 97.530, the direction of the September U.S. Dollar Index on Monday is likely to be determined by trader reaction to the support cluster at 97.545 to 97.510.
The Canadian Dollar rose 0.15% against the U.S. Dollar. Gains were limited by a steep drop in crude oil prices. The Euro posted a 0.46% gain against the dollar, but due to its heavy weighting, it had the biggest influence on the index’s decline.
Today, ECB Meeting minutes read that the outlook for the economy remains weaker and further stimulus would come as early as in September. Greenback had maintained a choppy performance today, remaining within 98.14/98.38 range levels.
It’s often like this prior to market-moving events. Prices keep trading in a narrow consolidation, dropping subtle clues here and there. The context remains though, and coupled with the preceding price action, it allows to us to see the market tipping its hand. So, how have we prepared for what’s to come?
The upward-facing USD/CHF pair was aiming to breach above the overhead red Ichimoku Clouds. After displaying three consecutive positive sessions in a row, the Japanese Yen pair was attempting to breach above the 106.742 resistance.
Based on the early price action, the direction of the index the rest of the session is likely to be determined by trader reaction to the short-term 50% level at 97.840.
U.S. stocks rose after the Trump administration announced it would be delaying tariffs on certain goods beyond the previous September 1 deadline. The news sent bond yields higher, after the curve flattened the most in more than a decade earlier in the session.
The People’s Bank of China has once again set a higher yuan rate than expected, which helps to reduce the volatility of stock markets and supports them in offsetting the decline of the past week.
The Chinese Yuan pair continued to stay sustained within a multi-month uptrend channel. Canadian currency slipped following disappointing Jobs data thereby allowing the Loonie pair to climb fresh heights.
Based on the early price action and the current price at 97.475, the direction of the September U.S. Dollar index the rest of the session is likely to be determined by trader reaction to the intermediate 50% level at 97.510 and the intermediate Fibonacci level at 97.230. Inside this zone are three Gann angles at 97.260, 97.365 and 97.450. Holding inside this zone is likely to lead to a choppy two-sided trade.
Along with the Chinese Yuan currency that got hit massive sell-off over uprising trade tensions, the South African Rand (ZAR) also slumped. The Swiss Franc pair had formed a Double Top trading pattern, hinting for more upcoming bearish sessions.
Fiber continued to remain underway recovery today after suffering a massive plunge on July 31. After ten negative trading sessions in a row, today, the Aussie pair attempted to display some positive drifts.
Oh Boy, POTUS is definitely not happy. He was putting pressure on Jerome Powell and FED to lower the rates to weaken the USD and boost the stocks.