It looks like an implicit currency agreement, where the different currencies are allowed to move in a certain range - overshooting will be corrected soon. That is Forex today, after a financial and economical shock wave, which is over now. But it has after-effects, coming up now to the surface. Even central banks consider their role newly, as their meeting in Jackson Hole revealed. They are not speaking of contributing to stability anymore, they are talking of their responsibility to prevent bubbles. That is new, especially for the US Fed.

We expect for today's trading some recovery moves in the USD, and put our trading bands accordingly in the major pairs list. Note the exceptional state of the Yen, where political influence is working, weakening it. There are no market moving fundamental data scheduled for today.


Intraday Market Outlook for Day Traders

EUR/USD
The 1.4520/50 resistance zone seems unbreakable - the pair tried to test it several times over the past days, without success. Currently trading at 1.4490, there is some weakness in the market this European morning. We expect this to continue for a while, to marks around 1,4450. From there recovery moves can set in.

GBP/USD
The Pound is on recovery move against the Dollar in early European trading, currently at 1.6490. We doubt this level will be surpassed substantially on the upside - downward corrections from here are probable, to marks around 1.6470.

USD/CHF
The Dollar recovers very slowly against the Swiss Franc, having met lows of 1.0430, and is currently trading at 1.0465. We do see some more recovery potential, but not much for today, perhaps to a maximum of 1.0510.

USD/JPY
Picking up his strength again versus the Yen, the Dollar continued its uptrend from Asian trading this European morning. We expect this uptrend to continue - with the market presently at 92.45 and pausing, another higher mark of 92.80 can be reached today.