|Day's Range||0.009 - 0.009|
|52 Week Range||0.0087 - 0.0095|
The U.S. dollar rebounds from some modest losses in Tuesday trading, shaking off a weaker-than-anticipated consumer-confidence read.
The US dollar rallied during the trading session on Tuesday, using the ¥110 level as a launching base. This is a market that continues to see a lot of volatility, which makes a lot of sense considering that it is a risk sensitive market.
Based on Monday’s price action and the early action on Tuesday, it looks as if USD/JPY investors have absorbed the plunge in U.S. Treasury yields. It further indicates the next major move in the Forex pair will likely be determined by appetite for risk. Another steep sell-off is likely to pressure the Dollar/Yen and firmer equity prices will be supportive.
Many currencies, including the majors, are retracing last week’s movements on Monday, leading to little action in the U.S. dollar and euro, as well as a rebound from losses in emerging markets.
The US dollar has gone back and forth during the trading session on Monday, testing the ¥110 level. This is an area that will of course attract a lot of attention due to the round figure and previous resistance.
The Euro fell hard during Friday’s session, breaking below the crucial 1.13 level after getting poor German economic numbers. The market is likely to keep volatile as fears of a global recession growing strong after US bond yield curve inverts for the first time since 2007. The 1.1250 level underneath should attract a lot of attention and if the pair breaks below the 1.12 level, then it would be extremely negative and will open the door towards 1.10 level. …Read MoreGBP/USD
All eyes are likely to be on the relationship between U.S. Government bond yields and Japanese Government bond yields. Last week, U.S. yields plunged, inverting the yield curve which stoked fears that an economic recession is on the horizon.
Over the short-run, we could see a volatile two-sided response to the initial release of the report. After that it’s all up to the Democrats and whether they have enough evidence to impeach Trump or if they decide to put their efforts into beating him in the 2020 election.
The U.S. dollar climbs in Friday trading, as investors grapples with an inverted U.S. Treasury yield curve and another round of disappointing economic data in the eurozone region that put pressure on the euro.
Sterling Pound sets off uptrend following Brextension. Lonnie pair uplifts over weak Iran Export numbers. AUD/USD plunges amidst Euro’s Fall.
The US dollar trying to break back into the previous resistance barrier that starts at the ¥111.50 level, but we rolled over rather significantly to break towards the ¥110 level.
The US dollar broke down against the Japanese yen on Friday, slicing through the bottom of the hammer from the Thursday session in what is a negative sign. At this point, it’s very interesting a telling as to which just happen, but now we have a major level underneath to pay attention to.
After the show of strength in the Wednesday’s session, the pair gave back the gains in Thursday’s session, breaking below the 1.14 level once again. The region above the 1.14 level has been extremely resistive for the pair and given the ECB’s softer stance on interest rate hike as well, the pair will continue to struggle and remain volatile. The 1.1350 level underneath is strong support and likely to attract value. …Read MoreGBP/USD
Economic data comes back into focus today. The Eurozone’s private sector PMI numbers will indicate whether the slowdown was temporary or worsening…
The US dollar pulled back a bit during the trading session on Thursday as we continue to see softness in the greenback. The ¥110 level continues to be important and should offer support.
We were not expecting much of the hawkishness from FOMC yesterday but the amount of the dovishness was really surprising for the market participants.
The USD/JPY could see further downside pressure over the long-term if the slowing economy worsens and opens the door for a potential rate cut later this year if the economy slows as much as some analysts fear.
The Kiwi and Aussie Dollar find strong support in the wake of a more dovish than expected FED. Will be the BoE sink the Pound later today?
The U.S. dollar fell to its lowest level since early February on Wednesday as the Federal Reserve reaffirmed its dovish stance. The central bank downgraded its expectation of interest rate increases to zero for 2019, from two expected hikes before. Although this aligned the Fed's forecast with those of many market participants, it reinforced the idea that a major driver of the dollar's strength last year has petered out. The Fed also downgraded its economic outlook, dropping its gross domestic product forecast to 2.1% for this year, from 2.3% before, and said that the winding down of its balance sheet would end in September. The popular ICE U.S. Dollar Index , which measures the buck against six rivals, turned negative after the Fed update. The gauge was last down 0.5% at 95.947, its lowest level since earlyFebruary, according to FactSet. Market participants are now turning their attention to a news conference with Fed Chairman Jerome Powell scheduled for 2.30 p.m. Eastern.
Traders are going to have to decide which is more important, a dovish U.S. Federal Reserve or fear of a breakdown in U.S.-China trade talks. A dovish Fed would be bearish for the Dollar/Yen because lower interest rates would make the dollar a less-attractive investment. While trade talk concerns could encourage safe-haven demand for the dollar.
The AUD went back and forth during yesterday’s trading session, hovering around the psychologically important 0.71 level. Its likely that the region above the 200 Day EMA will continue to attract buyers and trying breaking above the major resistance level which extends up to the 112 level.