|Day's Range||0.009 - 0.009|
|52 Week Range||0.0087 - 0.0096|
Investors will continue to focus on demand for risky assets and the U.S. economic data’s influence on Treasury yields and the chances of additional rate hikes from the Fed. There are no major reports from Japan this week. This means that traders will be watching the U.S. data closely. Key reports include U.S. Core Retail Sales and Retail Sales, and Building Permits. Fed Chairman Jerome Powell is also scheduled to speak before Congress on Tuesday and Wednesday.
There were no other major releases last week so the price action in the Australian Dollar, New Zealand Dollar and Japanese Yen was primarily influenced by the U.S. producer and consumer inflation data as well as the consumer confidence report. Traders reacted to these reports because they could help influence the Fed’s interest rate decisions later this year.
The US dollar has rallied significantly during the trading week, breaking above the ¥111 level, an area that has been very important over the last couple of months.
The US dollar has turned sideways overall during the day on Friday, as we hover above the vitally important ¥112.50 level. This was a target for me previously, and I expect to see a lot of digestion of the gains in this area.
The market further dipped lower during the Thursday’s session testing the 1.1650 level, an area which has been a support more than once. The reaction in the market is due to the details in the ECB meeting minutes. Going ahead, the market is likely to hold this level and will also attract buyers interest. If the market further breaks from here, then it will rapidly unwind towards the 1.16 level. …Read MoreGBP/USD
The US dollar has rallied significantly during the day on Thursday, reaching towards the ¥112.50 level, an area that we have been discussing for some time. This is an area that I think causes quite a bit of resistance, and the fact that we are overbought right now should not be overlooked.
Japan’s yen hit a six-month low against the U.S. dollar on Thursday even though trade tension continue to have a strong grasp on financial markets. Now analysts wonder whether this means the days of the yen haven are numbered.
The U.S. dollar advances to a fresh six-month high against the Japanese yen on Thursday, following news that trade talks between the U.S. and China are said to resume as the world’s largest economies are throwing their weight around.
The Fed’s key weapon to avoid runaway inflation is its ability to raise interest rates as aggressively as it takes to prevent inflation from overheating the economy. The trick is to avoid raising too fast to kill economic growth. At this time, the market is pricing in at least two more rate hikes this year. Today’s catalyst will be a report on U.S. consumer inflation, due to be released at 1230 GMT.
Silver tries to create a double bottom formation but for this, we need to see the price closing above the resistance on the 16.15 USD/oz. That would also create another hammer on the daily weekly chart.
The market in the short term is likely to continue volatile as confusion relating to the rate hike by ECB remains. The pair had a choppy session during the yesterday’s session, initially trying to rally during the day but found enough resistance to turn around and fall towards the 1.3225 level.
The US dollar rallied again during the trading session on Wednesday, reaching towards the ¥111.25 region. This area was resistance just 24 hours ago, and now that we are approaching it again, it looks as if the market is trying to build up enough momentum to finally break above there.
By Kate Duguid NEW YORK (Reuters) - The U.S. dollar strengthened against the Japanese yen on Wednesday as trade tensions mounted and after the Labor Department's expectation-beating inflation report, which increased prospects that the Federal Reserve will raise interest rates another two times this year. The dollar broke through the psychologically significant barrier of 112 yen for the first time since Jan. 10, rising as much as 1.3 percent to 112.17 yen. Both the yen and the dollar are favored as safe-haven investments, but the strength of the greenback suggests investor faith in the U.S. economy rather than a bid for safety.
The U.S. dollar strengthens against most of its major rivals Wednesday following fresh consternation over President Donald Trump’s clashes with major trading partners and allies across the globe.
Inability to sustain the break of nearly two-month old descending trend-line seems dragging EURUSD towards 1.1680 re-test, clearing which the 1.1600 and the 1.1540 are likely following numbers to appear on the chart. Alternatively, the 1.1730-40 region, comprising 50-day SMA & aforementioned TL, could keep restricting the pair’s near-term upside, which if broken might trigger its recovery targeting the 1.1840 and the 1.1935-40 resistances. Alike EURUSD, the GBPUSD also couldn’t surpass adjacent trend-line, needless to mention about 50-day SMA.
The Euro fell hard during the Tuesday’s session as less than anticipated economic numbers came out from the European region. The British Pound has been choppy through the yesterday’s session initially falling hard, but then bounced a couple of times from there. The AUD initially fell hard during the yesterday’s session but found support around the 0.7430 level to bounce back again.
The economic calendar today will see investors shifting focus to the BoC’s monetary policy meeting. Chances of a rate hike remain high as the economists polled expect to see the BoC raising rates by 25 basis points at today’s meeting.
The US dollar rallied against the Japanese yen during trading on Tuesday, reaching as high as ¥111.30 during the European session before pulling back slightly. It looks as if there is going to be supported at the ¥111 level after the break out, so I think it’s time to start buying.
The yen rose across the board on Wednesday and Asian stocks were poised to come under pressure after the United States said it would impose tariffs on an extra $200 billion (£150.8 billion) worth of Chinese imports, escalating the trade war. Washington decided to impose the extra tariffs after efforts to negotiate a solution to the trade dispute failed to reach an agreement, senior administration officials said on Tuesday. The United States had just imposed tariffs on $34 billion worth of Chinese goods on Friday, firing the first shots of a trade war.
The news hit the stock market hard late Tuesday after investors had driven prices higher on the back of the start of earnings season and dampening concerns over the trade dispute. The early price action in the financial markets indicates that investors are not going to wait for the announcement and would rather take protection sooner than later.
Although the USD/JPY close higher on Tuesday, the price action was weak late in the session. If the rumor is true about new tariffs on China then we could see further weakness on Wednesday. Based on past performance, the announcement of new tariffs has been bearish for stocks, but bullish for the Japanese Yen due to safe haven buying.
The pair started the week with a bullish momentum, reaching towards the 1.18 level, an area which is massively resistive. The pair eventually pulled back lower reaching towards the 1.1750 level at the end of the session. The current market movement is affected by multiple factors including political developments in Europe and trade war scenarios.
The release of the UK’s monthly GDP numbers came out slightly above expectation. The UK economy grew by 0.3% in May compared to 0.2% in April.
The easing of tensions over the trade conflict between the United States and China is also helping to calm fears of a prolonged trade war between the two economic powerhouses. This is causing investors to liquidate their safe haven buys of U.S. Treasuries. By selling their position in Treasurys, investors are driving up yields. Higher yields make the U.S. Dollar a more attractive investment.
The US dollar didn’t do much during the day on Monday as traders came back from the weekend, at least not against the Japanese yen. We continue to hang about the ¥110.50 level, which seems to be a bit of a fulcrum for price right now.