|Day's Range||0.009 - 0.009|
|52 Week Range||0.0087 - 0.0096|
The U.S. dollar loses its strength in late Friday trading amid President Donald Trump’s signing of a spending bill that will avoid a renewed partial government shutdown and his declaration of a national emergency on border security.
The US dollar rallied again during the week, breaking towards the 61.8% Fibonacci retracement level. However, we are starting to run into a bit of resistance, which of course makes sense as the Japanese yen is a bit of a safety currency.
The US dollar fell a bit during the trading session on Friday, as we continue to see a lot of resistance above at the 200 day EMA. At this point, the 61.8% Fibonacci retracement level has offered significant resistance as well, but as we go into the weekend it looks like we are trying to find some type of footing.
With the poor economic numbers from the US, the market is likely to favour a move to the upside and try moving towards the top of the consolidation phase to the 1.15 handle. The pair is now testing support at the 50% Fibonacci scale, and next major support is at the 1.27 level, which is the 61.8% Fibonacci retracement level. The market is likely to remain choppy and with poor economic numbers from the US, AUD is likely to gain a bit of momentum.
Theresa May’s troubles continue to pin back the Pound and the stats have provided little help. More swings on the cards later today.
The US dollar rolled over during trading on Thursday as poor economic numbers came out of the United States. Beyond that, we were at the 200 day EMA, which of course is something that you are paying attention to.
The pair pulled back significantly during the Wednesday’s session, breaching the 1.13 level again to reach down towards the 1.1280 level. The pair is witnessing a lot of issues above the 1.13 level and until unless it breaks above 1.1350 level, the market will continue to struggle rallying higher. Going ahead, the pair will continue to consolidate, trading between 1.12 and 1.15 level. …Read MoreGBP/USD
Brexit and Trade talks are on the political agenda, while Germany’s GDP numbers and retail sales figures out of the U.S will be in focus on the data front.
The primary market drivers of the rally in the USD/JPY will continue to be rising Treasury yields and increasing appetite for risky assets. The main catalyst will be optimism over U.S.-China trade negotiations.
The U.S. dollar inches higher against many of its rivals early Wednesday after a brief period of jerky trading, as market participants make sense of rumors surrounding Brexit, central bank updates and myriad economic data including inflation in the U.S.
The US dollar continues to rally during the day on Wednesday, testing a major moving average in the process. That being the case, I believe that we are starting to get a bit overdone at this point.
The Euro fell initially during Thursday’s session but found enough support underneath, to bounce higher and break above the 1.13 level. The market is witnessing a lot of attention around the 1.13 level and at this point, it is likely that the pair will continue trying to reach towards the top of the overall consolidation area which is as high as 1.15 level. If the pair turns around, then it could unwind towards the 1.12 level. …Read MoreGBP/USD
Will inflation numbers deliver a boost for the Pound or the Dollar, or will they ease pressure on the respective central banks to make a move?
U.S. government debt yields rose on Tuesday after federal lawmakers reached a deal to fund the government and avoid a repeat shutdown. The helped widen the spread between U.S. Government bond yields and Japanese Government bond yields, making the U.S. Dollar a more attractive investment.
The U.S. dollar spends Tuesday’s session in negative territory, snapping an eight-day winning streak as investors turn their attention to details in the U.S.-China trade spat.
The US dollar initially tried to rally during the trading session on Tuesday but found enough resistance to roll over and form a bit of a shooting star by the time the Americans got involved. If that is going to be the case, the market looks very likely to roll over in an area that should be resistive anyway.
Cars giant Nissan took a £65 million hit from the Carlos Ghosn scandal on Tuesday as profits crashed to a six-year low. The Japanese company, already suffering from a sluggish global car market, booked a one-off 9.2 billion yen (£64.7 million) charge for “mis-stated compensation” it estimated was paid to Ghosn between 2009 and 2017. Ghosn, the former Nissan chairman, has been detained in Tokyo since November charged with understating his income at the cars giant.
The Euro had a bearish start of the week, as the pair had broken below the much supportive 1.13 level and has reached towards the 1.1280 level. With a lot of negativity around the European Union and loose monetary policy by ECB, the pair will continue to struggle and remain volatile.
Gold is doing everything to defend the 1307 USD/oz support. The latest technical formation here is the inverse head and shoulders pattern. The price closing above the mid-term horizontal resistance on the 1315 USD/oz and the neckline (purple), will be a strong signal to go long.
Tensions over the timing and extent of a trade deal is likely to continue to underpin the USD/JPY on Tuesday. To some extent, traders are also expressing concerns over another potential partial government shutdown at midnight on Friday although there is some talk that a deal has been reached to avoid the shutdown.
The U.S. dollar adds to its recent winning streak, strengthening against rivals across the board, despite the chance of the renewed partial government shutdown looming in the background.
The US dollar rallied significantly during the trading session on Monday to kick off the week, slicing through the ¥110 level. We are on the precipice of breaking out to the upside, which would be rather impressive considering how much destruction had been done. At this point, if we rollover at this point, we would need to clear the bottom of the candle stick from Monday to start selling.
The Euro has fallen initially during Friday’s session but found strong at the 1.1320 level to turn around and show signs of strength. If the pair breaks above the 1.1350 level again, then it will be slightly positive for the market and will attract buyers. Overall in the short to medium term, the market will continue to remain choppy and will trade between the 1.13 and 1.15 level. …Read MoreGBP/USD
We’re not expecting to see much movement in the USD/JPY on Monday due to the bank holiday in Japan. Furthermore, relatively firm Treasury yields and low stock market volatility is likely to hold the Forex pair in a range.
The direction of U.S. Treasury yields will be the primary influence on the direction of the Dollar/Yen trade this week. Yields will be influenced by investor demand for risk.