U.S. Dollar Trading (USD) a slow US session with traders on Holiday but we did some movement during the European session where GBP/USD and EUR/USD both fell sharply. The lack of progress seen in the meetings from Europe has added uncertainty/risk to the trading environment. Looking ahead, US traders return.
The Euro (EUR) the EUR/USD broke below 1.3000 and headed down to 1.2940 before stabilizing into a tight range in the US session. The EUR/GBP is grinding higher to 0.8100. The EUR/JPY was very volatile falling with USD/JPY and the major sharply back to Y101.50. The Sterling (GBP) GBP/USD continued its correction lower towards the 1.6000 level almost testing it at 1.6020 by the close. The risk off feel and weakening technical picture is hurting the GBP on the major and the crosses. Fresh direction will require clarification of the Spanish bailout saga. Looking ahead, August Industrial Output forecast at -0.5% vs. 2.9% previously. Also, August Trade Balance forecast at -8.5bn vs. -7.15bn previously.
The Japanese Yen (JPY) USD/JPY buying faded with the Yen crosses heavy on Monday. Japan was away and this led to thin conditions but the mood was negative and the Yen strong. The G7 meet later this week in Tokyo and traders are cautious because the Japanese are keen to talk about the strength of the Yen in recent months. Australian Dollar (AUD) the AUD/USD downside was tested again overnight falling to 1.0150 but failing to break and bouncing back to 1.0200. The outlook is mixed with the fate of the Eurozone and the China to unknowns as of now. Sellers are looking for a 1.000 test in the coming sessions citing falling interest rates.
Oil & Gold (XAU) Gold broke down below $1770 briefly in the European session before edging back to $1775 in stable trade. Oil was subdued with the US traders away and we closed just under the $90 a barrel. Global growth concerns are mounting and might cap the energy going forwards.
Pairs to watch
EUR/USD Clarity on Spain soon?
USD/JPY Japanese Officials to talk Yen strength ahead of G7?
Negative start to the Week, Focus on Spain
U.S. Dollar Trading (USD) a slow US
session with traders on Holiday but we did some movement during the European
session where GBP/USD and EUR/USD both fell sharply. The lack of progress seen
in the meetings from Europe has added uncertainty/risk to the trading environment. Looking ahead, US
traders return.
The Euro (EUR) the EUR/USD broke
below 1.3000 and headed down to 1.2940 before stabilizing into a tight range in
the US session. The EUR/GBP is grinding higher to 0.8100. The EUR/JPY was very
volatile falling with USD/JPY and the major sharply back to Y101.50. The Sterling (GBP) GBP/USD
continued its correction lower towards the 1.6000 level almost testing it at
1.6020 by the close. The risk off feel and weakening technical picture is
hurting the GBP on the major and the crosses. Fresh direction will require
clarification of the Spanish bailout saga. Looking ahead, August
Industrial Output forecast at -0.5% vs. 2.9% previously. Also, August Trade
Balance forecast at -8.5bn vs. -7.15bn previously.
The Japanese Yen (JPY) USD/JPY buying faded
with the Yen crosses heavy on Monday. Japan was away and this led to thin
conditions but the mood was negative and the Yen strong. The G7 meet later this
week in Tokyo and traders are cautious because the Japanese are keen to talk
about the strength of the Yen in recent months. Australian Dollar (AUD) the AUD/USD downside
was tested again overnight falling to 1.0150 but failing to break and bouncing
back to 1.0200. The outlook is mixed with the fate of the Eurozone and the China
to unknowns as of now. Sellers are looking for a 1.000 test in the coming
sessions citing falling interest rates.
Oil & Gold (XAU) Gold broke down
below $1770 briefly in the European session before edging back to $1775 in
stable trade. Oil
was subdued with the US traders away and we closed
just under the $90 a barrel. Global growth concerns are mounting and might cap
the energy going forwards.
Pairs to watch
EUR/USD Clarity on Spain soon?
USD/JPY Japanese Officials to talk Yen strength
ahead of G7?
TECHNICAL COMMENTARY
Currency
Sup 2
Sup 1
Spot
Res 1
Res 2
EUR/USD
1.2878
1.2925
1.2965
1.3035
1.3120
USD/JPY
77.79
78.11
78.30
78.76
79.00
GBP/USD
1.5923
1.5987
1.6030
1.6142
1.6218
AUD/USD
1.0100
1.0123
1.0205
1.0235
1.0275
XAU/USD
1755.00
1768
1775
1800
1811
OIL/USD
88.00
89.00
89.90
90.00
91.50
By Anthony Darvall (TonyD)
Forex trading involves substantial risk of loss, and may not be suitable for everyone.
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