This morning the Japanese yen is in control as traders seek out safer harbours. The yen pairs are on the back foot, as the USD/JPY drops for the second straight day, with the lows at 109.00 the likely target.
The GBP/JPY is extending its losing run, though is holding up relatively well this morning. The lows at 138.00 appear a formality though. The EUR/JPY is dropping further, with support at 122.00 now broken. The AUD/JPY remains rangebound.
The dollar index is on the back foot and is being forced lower by the strength of the yen. The AUD/USD is higher for the second straight day, with the GBP/USD also showing some relative strength after two days of losses. The EUR/USD is struggling by contrast after two days of losses.
The USD/CHF is lower after hefty gains yesterday that pushed the pair above 1.0050.
Coming up today
At 14.00, we get the BOC rate statement, with overnight rate at 14.00.
Trade Idea
While European leaders battle for control of the EU parliament, the EUR/JPY continues to struggle.
Morning Report: 07.00 London
This morning the Japanese yen is in control as traders seek out safer harbours. The yen pairs are on the back foot, as the USD/JPY drops for the second straight day, with the lows at 109.00 the likely target.
The GBP/JPY is extending its losing run, though is holding up relatively well this morning. The lows at 138.00 appear a formality though. The EUR/JPY is dropping further, with support at 122.00 now broken. The AUD/JPY remains rangebound.
The dollar index is on the back foot and is being forced lower by the strength of the yen. The AUD/USD is higher for the second straight day, with the GBP/USD also showing some relative strength after two days of losses. The EUR/USD is struggling by contrast after two days of losses.
The USD/CHF is lower after hefty gains yesterday that pushed the pair above 1.0050.
Coming up today
At 14.00, we get the BOC rate statement, with overnight rate at 14.00.
Trade Idea
While European leaders battle for control of the EU parliament, the EUR/JPY continues to struggle.
There could be further downside from here though and a good way to play this is a LOWER trade predicting that the EUR/JPY will close below 122.00 in 14 days for a potential return of 115%.
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