U.S. Dollar Trading (USD) the Dollar pared back some of Friday’s gains as US stocks stabilized and bounced into the close. USD/JPY is getting a lot of attention with the very quiet major beginning to stir with daily gains towards the key top side resistance at Y80. Looking ahead, Presidential Debate.
The Euro (EUR) consolidated above 1.3000 with most of the buying seen on the EUR/JPY which moved above Y104 and is targeting Y105 in coming sessions. The EUR/USD is in a holding pattern while the markets wait for further news regarding Greece Aid and Spanish Bonds buying. Risk events this week include FOMC on Wednesday which is critical for long term USD weakness. The Sterling (GBP) was weaker than most with the bounce to 1.6050 fading and we closed at 1.6000 once again. The bears are looking for a break and are getting help from the EUR/GBP which is pressuring the topside. GBP/JPY is supporting the Pound however with the popular Yen cross in a clear uptrend as the Yen is sold off across the board. Looking ahead, Bank of Canada Meetings forecast at to hold at 1.0%. Also BOE Governor King Speaks.
The Japanese Yen (JPY) the currency in focus with a string of recent gains getting attention and technical calls for more topside on the USD/JPY and the crosses. Investors talk of global currency wars in which Japan has let other currencies weaken at the cost of Japanese exporters. Australian Dollar (AUD) the major found support at 1.0300 before bouncing with the Euro. The outlook is negative for the Aussie Fundamentally but the FX market works a lot with correlations and if global stock markets rally then the AUD/USD should be dragged higher.
Oil & Gold (XAU) Gold stabilized with the break of the key $1730 level failing to lead to a major move lower. After stabilizing we have grinded back to the $1730. OIL/USD found resistance near $91 and fell sharply back to $89 as the selloff in Oil continued.
USD/JPY Grinding Higher
U.S. Dollar Trading (USD) the
Dollar pared back some of Friday’s gains as US stocks stabilized and bounced
into the close. USD/JPY is getting a lot of attention with the very quiet major
beginning to stir with daily gains towards the key top side resistance at Y80. Looking ahead,
Presidential Debate.
The Euro (EUR) consolidated above
1.3000 with most of the buying seen on the EUR/JPY which moved above Y104 and
is targeting Y105 in coming sessions. The EUR/USD is in a holding pattern while
the markets wait for further news regarding Greece Aid and Spanish Bonds
buying. Risk events this week include FOMC on Wednesday which is critical for
long term USD weakness. The Sterling (GBP) was weaker than
most with the bounce to 1.6050 fading and we closed at 1.6000 once again. The
bears are looking for a break and are getting help from the EUR/GBP which is
pressuring the topside. GBP/JPY is supporting the Pound however with the
popular Yen cross in a clear uptrend as the Yen is sold off across the board. Looking ahead, Bank of
Canada Meetings forecast at to hold at 1.0%. Also BOE Governor King Speaks.
The Japanese Yen (JPY) the currency in
focus with a string of recent gains getting attention and technical calls for more
topside on the USD/JPY and the crosses. Investors talk of global currency wars
in which Japan has let other currencies weaken at the cost of Japanese
exporters. Australian Dollar
(AUD) the major found support at 1.0300 before bouncing
with the Euro. The outlook is negative for the Aussie Fundamentally but the FX
market works a lot with correlations and if global stock markets rally then the
AUD/USD should be dragged higher.
Oil & Gold (XAU) Gold stabilized with
the break of the key $1730 level failing to lead to a major move lower. After
stabilizing we have grinded back to the $1730. OIL/USD found resistance
near $91 and fell sharply back to $89 as the selloff in Oil continued.
Pairs to watch
EUR/USD gathering support for retest higher?
GBP/USD support under 1.6000 holding so far.
TECHNICAL COMMENTARY
Currency
Sup 2
Sup 1
Spot
Res 1
Res 2
EUR/USD
1.2944
1.2995
1.3065
1.3110
1.3140
USD/JPY
79.14
79.75
79.90
80.10
80.63
GBP/USD
1.5969
1.5990
1.6020
1.6054
1.6105
AUD/USD
1.0269
1.0300
1.0330
1.0351
1.0383
XAU/USD
1690.00
1700
1727
1733
1755
OIL/USD
87.00
88.00
89.15
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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