Littlefish FX Analysts
Littlefish FX
KEY DATA RELEASES TODAY (GMT) :
1030 USD FOMC Member Fischer Speaks
1230 USD Final GDP q/q 2.4% 2.2%
1400 USD Revised UoM Consumer Sentiment 92.5 91.2
1945 USD Fed Chair Yellen Speaks
OVERNIGHT:
EURUSD had a firm rejection of the topside overnight. Interbank flow reports suggest high turnover at the 1.1000 handle with decent offers re-emerging for the third day running. It is this persistent replenished supply which eventually won over and again it happened as NY entered the fray. The market could not take out 1.1060 and that failure looked to have had the biggest impact. Clearly a lot of EURUSD bearish strategies have been pared back but that level should now prove to be an interim line in the sand on future attempts higher. A close below 1.0860 would be key tonight and with Yellen speaking later we could be in for an interesting close. US GDP revisions are also on the agenda.
The selloff in USDJPY continued in the early London session, marking a low of 118.33. The USD, however, found fresh legs in the NY session. Inflation data continued to show weakness, with core CPI exfood falling to 0 pct. This has also lifted some expectations of further BOJ policy easing needed. Short term and tactical trading is clearly the way to go for now, with a bias being to the downside, 119.60 serves as the initial resistance to the topside, while 119.00 and 118.80 are the initial supports.
Price action after the stronger than expected retail sales figures was indicative of the path of least resistance for cable. Decent selling interest ahead of the psychological 1.5000 level was enough to cap the pair’s rally, and the broad USD recovery brings the pair back in the ever familiar 1.48 handle. Anticipating real money lightening up ahead of the elections, given the doveish profile of the BOE. The pair however needs a break of 1.4800 to get bears excited again
PRICE ACTION OVERVIEW:
EUR: While 1.0760/40 supports target 1.1190/1.1210 equality corrective target
GBP: While 1.5030/50 contains upside target 1.4630
JPY: While 118 contains downside target 124.00
CAD: While 123.50/124 contains downside target 130
AUD: While .7940/6- contains upside target .72
All comments, charts and analysis on this website are purely provided to demonstrate our own personal thoughts and views of the market and should in no way be treated as recommendations or advice. Please do not trade based solely on any information provided within this site, always do your own analysis.
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