Although the G-summits usually do not have much influence on Forex, this one, with the G-8 held in Italy, could have an impact on the USD’s performance. Preliminary statements stressed the necessity for new financial regulations and the continuity of monetary and fiscal support, especially in Europe. For the market, that would mean that the quantitative monetary expansion is far from over in Europe, in contrast to the U.S., where the same thing is near an end. So the money flow could turn again in favor of the euro, lured by future capital gains in the European bond market. Right now, the dollar is on the winning side, though, profiting from the uncertainty in the stock markets.
For today’s trading, we expect downward corrections in the USD, giving room for an upward movement in the major pairs. See the details described below in our list. There are no market-moving data scheduled for today, but note the ongoing G-8 summit in Italy, where some interviews can change things rapidly (if it happens today, we think it would not be to the benefit of the USD).
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The euro this European morning is just hovering above the 1.3900 support line against the dollar, slowly giving some signs of recovery. We expect that recovery to gain momentum today, leading to prices around 1.3980.
GBP / USD
Cable too is on a slight recovery path in early European trading, currently priced at 1.6115 from lows around 1.6050. We see still more upward room in today’s market hours, to a maximum of 1.6190.
USD / CHF
The dollar lost its upward momentum against the Swiss franc during Asian trading hours and is currently consolidating its lower levels around 1.0940 against the Swiss franc. We expect more downside risk today, towards the support zone between 1.0840 and 1.0820.
USD / JPY
Again, the dollar moved lower against the yen in Asian trading hours and is currently priced around 94.20. We expect these lower levels to more or less hold in today’s market in low volatility, and see minor recovery moves, but not beyond 94.50.
For today’s trading, we expect downward corrections in the USD, giving room for an upward movement in the major pairs. See the details described below in our list. There are no market-moving data scheduled for today, but note the ongoing G-8 summit in Italy, where some interviews can change things rapidly (if it happens today, we think it would not be to the benefit of the USD).
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The euro this European morning is just hovering above the 1.3900 support line against the dollar, slowly giving some signs of recovery. We expect that recovery to gain momentum today, leading to prices around 1.3980.
GBP / USD
Cable too is on a slight recovery path in early European trading, currently priced at 1.6115 from lows around 1.6050. We see still more upward room in today’s market hours, to a maximum of 1.6190.
USD / CHF
The dollar lost its upward momentum against the Swiss franc during Asian trading hours and is currently consolidating its lower levels around 1.0940 against the Swiss franc. We expect more downside risk today, towards the support zone between 1.0840 and 1.0820.
USD / JPY
Again, the dollar moved lower against the yen in Asian trading hours and is currently priced around 94.20. We expect these lower levels to more or less hold in today’s market in low volatility, and see minor recovery moves, but not beyond 94.50.
