|Day's Range||0.009 - 0.009|
|52 Week Range||0.0087 - 0.0096|
Live from the floor of the New York Stock Exchange, Yahoo Finance's Jared Blikre joins Alexis Christoforous to discuss the latest market moves.
Geopolitical noise is the focus of foreign exchange investors on Monday, leaving havens like Japan’s yen and Switzerland’s franc among the best performers, while the U.S. dollar struggles.
The 1.15 level is a strong psychological support underneath and will attract a lot of value traders to send this market higher towards the 1.16 level. The Italian debt crisis is still affecting to Euro to break lower which is expected to take time to settle down and 1.1450 level underneath is acting a floor of this market.
The US dollar fell during the week against the Japanese yen after forming a perfect shooting star last week at resistance. This was a classic sell signal, and the astute traders out there benefited. However, as we close out the week, it looks likely that there is support just below.
The US dollar initially tried to rally during the trading session on Friday, but found resistance at the top of the recent consolidation that we have been in. Overall, this is a market that looks as if it is trying to find support at the 61.8% Fibonacci level again.
The U.S. currency, as measured by the ICE Dollar Index, (DXY) a measure of the buck’s strength against six trading rivals, was at 95.265, up 0.3%. Overnight, the People’s Bank of China set the yuan (USDCNY) midpoint at 6.9120, its weakest level since March 10, 2017.
The Euro rallied during the Thursday’s session on the back of weak US CPI data reaching towards the 1.16 level, which is offering a bit of resistance. The 112 level underneath looks supportive and a slight bounce can send the pair towards the 113 level and above where there is a significant amount of supply in the market.
The US dollar continues to show weakness against the Japanese yen and a miss for the CPI figures out of America didn’t help the situation either. It looks as if the ¥112 level underneath should offer support though, so I think it is only a matter of time before we see a bit of a bounce. The recent selloff has been exacerbated by the bloodletting on Wall Street during Tuesday.
The U.S. dollar traded lower Thursday, putting the currency on track to book its third consecutive losing session. The ICE Dollar Index (DXY) , a measure of the dollar against six of its nearest rivals, is trading down 0.5% to 95.033, around a 10-day low. The greenback, which tends to rise in turbulent times, is lagging behind as the public spat between President Donald Trump and the Federal Reserve continues.
The US dollar pulled back a bit during the day on Wednesday as fears creeped back into the market. It’s more of the same though, it’s the European selling and the Americans looking to find support underneath. Because of this, I fully anticipate that by the time the day ends, we will probably break back above the ¥113 level.
The steep drop in U.S. equity markets drove investors to seek shelter in the safety of U.S. Treasury markets. This drove down yields which made the U.S. Dollar a less-desirable investment.
Today’s U.S. Producer Price Index (PPI) report is expected to move the USD/JPY. It is expected to show a monthly increase of 0.2%, up from the previously reported -0.1%. Core PPI is also expected to show a rise of 0.2%, also up from -0.1%.
The US dollar chop around during the day on Tuesday, showing signs at the ¥113 level. This is an area that has been important more than once, and I think at this point we are starting to see a bit of a revival of the uptrend.
Economic data out of Asia give the Aussie and Kiwi Dollars some respite early in the day, while geo-political risk remains the key area of focus.
CURRENCIES The U.S. dollar retreated from a seven-week high Tuesday as some of its closest rivals clawed back early losses. The ICE Dollar Index (DXY) , which measures the value of the buck against a basket of six other currencies, was trading at 95.
Although short-term descending trend-line signals further downside of the EURUSD, oversold RSI & 1.1430-25 support-zone could trigger the pair’s pullback. Given the sellers refrain to respect the 1.1425 mark, the 1.1390 & the 1.1350 may offer intermediate halts during the pair’s drop towards 1.1300 round-figure. Even if the pair manages to conquer aforementioned TL figure of 1.1515, it still needs to surpass the 1.1525-30 region in order to aim for 1.1615 and the 1.1650. It should also be noted that the pair’s sustained trading beyond 1. ...
The US dollar fell hard to kick off the week against the Japanese yen as we see a lot of negativity, into the marketplace. Perhaps it is due to the trade situation between the United States and China, perhaps it is due to the Italian debt situation, or perhaps it’s due to just a general negativity.
The battle between the Dollar and the Japanese Yen will be at the forefront until the stock market stabilizes. Theoretically, rising U.S. Treasury yields should continue to make the U.S. Dollar a more attractive investment. However, when it comes to protecting risk, the Japanese Yen becomes the more appealing asset.
The Dollar could be in for another move should geo-political risks linger and trade war chatter out of China provide little comfort.
The 1.30 level underneath is a strong support point for the market and is unlikely to break soon. The AUD bounced higher after testing for support at the 0.70 level and was also supported by the weak set of job numbers in the September month. The USD drifted a bit lower during the Friday’s session after a weak set of job numbers pronounced.
Volume and volatility are relatively low since today is a U.S. bank holiday. Last week, the price action was primarily driven by the sure in U.S. Treasury yields. With the Treasury market closed, traders will be rudderless.
The price action late in the week suggests we may be looking at a short-term top in the USD/JPY. Although the divergence in monetary policy between the hawkish U.S. Federal Reserve and the dovish Bank of Japan is still bullish for the Dollar/Yen. We may see some position adjustments this week which could weaken the Forex pair.
The US dollar rallied initially during the week against the Japanese yen but struggled at the ¥114.50 level. This is an area that is massive resistance from we have seen in the past, and we have formed a very bearish candle.
The US dollar drifted lower against the Japanese yen after the jobs number in America was a bit of a “meh” experience. Because of this, I think that we could get the pullback that we need from this market because of the overbought condition that we had been in.
The U.S. dollar softens Friday after the Bureau of Labor Statistics showed that the U.S. economy grew by 134,000 jobs in September.