Just imagine: Your business is not doing very well and therefore people invest in it. This is happening in Japan, where the economy is in the doldrums, but its currency is getting stronger and stronger. That is because the external value of a currency is measured by the stature of its national piggy bank, not by the country’s economic prosperity. The piggy bank is the trade and current account balance, where Japan is on the Olympic obesity champion podium, together with China and Switzerland among the non-commodity related economies (by percentage of GDP). Under these cirecumstances, a bet on selling the British pound against the yen still looks quite attractive.
In today’s trading, we favor a buy / sell strategy within the trading ranges described below, anticipating several tradeable up / down swings. As to the idea shorting the GBP / JPY pair described above, we see a good entry point today at 122.90, above the present market. Note the U.S. leading indicators for December at 16:00 CET, where another decline is expected.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Right now on recovery course, the pair is currently trading at 1.2950. We expect a see-saw market in today’s trading, ranging between 1.3020 on the upside and 1.2870 as the support zone.
GBP / USD
Consolidating its lower levels, cable recovered somewhat in European morning trading and is currently priced at 1.3801. We see more upmoves to come but not exceeding by much the 1.3830 resistance zone. Resulting downmoves then are supported by the 1.3620 mark.
USD / CHF
The dollar consolidated its higher levels against the Swiss franc in early European trading hours and is currently priced at 1.1615. We see that consolidation continuing today, not exceeding the recent highs around 1.1700, and finding support at 1.1560 in downmoves.
USD / JPY
The now three-day-old sideways trend channel in the pair remained intact in late Asian and early European trading hours, with current prices around 89.19. This is near the top of the 89.40 / 88.20 trading range which we see continuing in today’s market.
In today’s trading, we favor a buy / sell strategy within the trading ranges described below, anticipating several tradeable up / down swings. As to the idea shorting the GBP / JPY pair described above, we see a good entry point today at 122.90, above the present market. Note the U.S. leading indicators for December at 16:00 CET, where another decline is expected.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Right now on recovery course, the pair is currently trading at 1.2950. We expect a see-saw market in today’s trading, ranging between 1.3020 on the upside and 1.2870 as the support zone.
GBP / USD
Consolidating its lower levels, cable recovered somewhat in European morning trading and is currently priced at 1.3801. We see more upmoves to come but not exceeding by much the 1.3830 resistance zone. Resulting downmoves then are supported by the 1.3620 mark.
USD / CHF
The dollar consolidated its higher levels against the Swiss franc in early European trading hours and is currently priced at 1.1615. We see that consolidation continuing today, not exceeding the recent highs around 1.1700, and finding support at 1.1560 in downmoves.
USD / JPY
The now three-day-old sideways trend channel in the pair remained intact in late Asian and early European trading hours, with current prices around 89.19. This is near the top of the 89.40 / 88.20 trading range which we see continuing in today’s market.
