|Day's Range||0.009 - 0.009|
|52 Week Range||0.0087 - 0.0096|
Japan's government is set to spend about 3 trillion yen (£20.9 billion) in a second extra budget for this fiscal year to boost infrastructure, support for farmers and deal with natural disasters, two government sources with direct knowledge of the matter told Reuters. Prime Minister Shinzo Abe's cabinet is expected to decide on the additional budget later this month for submission to parliament in January, the sources said on condition of anonymity because they are not authorised to speak to media.
The US dollar initially fell during trading on Tuesday but has found buying pressure underneath in continuation of the bullish candle that had formed on Monday.
The Euro continues to witness a lot of selling pressure above the 1.14 level and on Monday’s session, it pulled back significantly after reaching the 1.1450 level above. The GBP has broken the major support level at 1.27 level in the yesterday’s session, reaching down towards the 1.25 level. The AUD hovered just above its important support level at 0.72 level in the yesterday’s session as a lot of headlines crossing the market suggesting US and China struggle on inking any trade pacts.
The US dollar initially dipped at the open on Monday, and a bit of a “risk off” move. However, as you can see on the daily chart we have turned around to form a very bullish candle.
The turnaround in U.S. stock futures set in motion a number of events that helped drive the USD/JPY up from its lows, while putting it in a positon to turn higher for the session. Therefore, the stock market is likely to be the main influence on the Dollar/Yen on Monday.
The direction of the USD/JPY this week will likely be determined by the movement of Treasury yields and the stock market. These two factors will be influenced by a number of U.S. economic reports and U.S. China relations.
According to the WSJ, members of the U.S. Federal Reserve are reportedly debating whether to signal a “wait-and-see” approach after a probable hike to the central bank’s benchmark rate at its December meeting.
The US dollar fell during the week, but then found a bit of support against the Japanese yen. We continue to see significant levels just below though, and I think that could be influential as to what happens over the next couple of weeks.
The US dollar has gone back and forth during the Friday session after the jobs number, essentially going nowhere for the day. That’s not a huge surprise, typically these days tend to be very noisy, and settle nothing.
The pair failed to rally higher during the Thursday’s session as the 1.1350 level is attracting a lot of attention and also providing support to the market. The market today will remain choppy because of the job figures ahead and if the numbers come out positive, then it could break the market lower towards the 1.13 level and much lower. …Read MoreGBP/USD
The U.S. dollar weakened as risk appetite wanes during Thursday trading after the arrest of an executive of Chinese telecommunications firm Huawei Technologies, at the request of the U.S., sparks new worries about U.S.-China relations.
The US dollar fell a bit during the day on Friday as we have more of a “risk off” attitude again after the arrest of a prominent Chinese businesswoman in Canada at the request of the Americans. This has people a bit nervous about the global markets in general, as it could heighten tensions between the Americans and the Chinese.
Another gap in the DAX, this time a bearish one. We start Thursday on the important mid-term horizontal support, which may help to lift the price higher. Why? Because that would be the gap closing movement and we all know that gaps love to be closed, especially on the DAX. The sentiment in the long-term remains negative but in the short-term, we can see this light in the tunnel.
The pair hovered around the 1.1350 level mostly during the Wednesday’s session as the 1.14 level above continues to be massively resistive. The market is struck between the 1.13 and 1.15 range for quite some time now and rallies are proving to be a selling opportunity in the market. The market will continue to trade between this range until it breaks above the resistive 1.15 level with bullish momentum. …Read MoreGBP/USD
The spike in risk aversion is being fueled by concerns about U.S. economic growth. These worries started to become an issue on Monday after an inversion in a part of the U.S. Treasury yield curve. This started when the three-year Treasury note surpassed its five-year counterpart.
The US dollar bounced a bit during the trading session on Wednesday, taking back some of the losses that occurred on Tuesday. I think that continues more of the same action that we have seen for quite some time.
The pair managed to break above the 1.14 level initially during the yesterday’s trade but due to significant resistance above, it rolled over to reach down towards the 1.13 level again. The market continues to be volatile amid concerns surrounding the EU related to its economic activity and Italian debt crisis. Going forward in the short to medium term, the pair will continue to consolidate between the 1.13 and 1.15 level. …Read MoreGBP/USD
Sellers have been hitting the U.S. Dollar since November 28 after Federal Reserve Chairman Jerome Powell said that U.S. interest rates were nearing neutral levels. Traders started adjusting their Dollar/Yen positions as they interpreted his remarks as signaling a slowdown in the pace of rate hikes.
Hong Kong-based fund Oasis Management failed to block the sale of Alpine Electronics Inc to larger affiliate Alps Electric Co, highlighting the struggle activist investors face to get firms to embrace their proposals in Japan. "Our team fought very hard today but unfortunately we lost this game," said Oasis Chief Operating Officer (COO) Phillip Meyer, after the Hong Kong fund's objection to the deal was overruled at an Alpine shareholder meeting on Wednesday.
With the U.S markets closed focus shifts back to the Pound, which is under intense pressure as British PM struggles in the Commons.
Japan will ramp up public works spending to a decade-high next fiscal year as part of efforts to ease the hit to its economy from a scheduled sales tax hike in October 2019, the Nikkei newspaper reported on Wednesday. The increase would mark a turnaround from years of downtrend in public works spending, as Japan seeks to rein in its huge public debt, which is twice the size of its economy and the biggest among advanced economies. The total size of Japan's budget is likely to exceed a record 100 trillion yen next fiscal year, the paper said.
The British pound is the most volatile major currency on the block on Tuesday, knocked down by a pair of parliamentary votes and a ruling by the European Union’s highest court.
The US dollar fell against the Japanese yen during trading on Tuesday, reaching below the ¥113 level. Quite frankly, I think this is a nice opportunity, as we have seen so much in the way of support underneath.
In spite of the EURUSD’s recent recovery, the pair is still left to surpass 1.1430-35 resistance-confluence, comprising 50-day SMA & immediate TL barrier, which in-turn may trigger the quote’s dip to 1.1300 but an upward slanting support-line, at 1.1280, can limit its additional downside. In case the pair continue trading southwards past-1.1280, the 1.1260 and the 1.1215 could be cause of concern as break of which might not hesitate fetching the pair to 61.8% FE level of 1.1100. Should extra short-covering fuels the pair beyond 1.1435 on a daily closing basis, the 1. ...
After the US-China trade war cease-fire announcement, the pair is witnessing a bit of risk-on move and also sluggish economic activity in the European Union pulling the market down. If the pair breaks the 1.13 level, then it will eventually reach down to the 1.11 level.