Forex Breakfast: USD/JPY bullish signal; More stimulus from ECB?; Stocks pullback?
|The US Dollar index found support at the 100.00 level after trading down three sessions in a row, mostly because the pause in the Euro rally due to the talks on snap elections in Italy.
Traders are now focusing in Thursday’s European Central Bank rate decision and what Mario Draghi will say in his press conference. Some analysts are betting on more stimulus. Valeria Bednarik from FXStreet says that “the ECB and the FED are probably setting the tone for the first quarter of 2017.”
EUR/USD: A pause not only in Italy
If we talk about the EUR/USD, we see that the EUR/USD is taking a breath after the post-Renzignation rally. The Euro found support at 1.0730; where the pair is attempting to recover ground. Now at 1.0750, the EUR/USD is still negative in the day. 1.0860 seems the level to break now.
GBP/USD finally above 1.3000?
It seems that the GBP/USD is ready to assault the 1.3000 for the first time since September as the pair has been trading positive in nine of the last 10 sessions. Bednarik affirms that “GBP/USD is poised to extend its gains up to 1.3000.” Nick Batsford, and Zak Mir from Tip Tv agree with her.
USD/JPY: Interesting MA crossing
And the day came when the 51-day MA crossed above the 200-day MA in the USD/JPY. What is that signaling? More bullish potential in the USD/JPY. With the pair in consolidation pattern in the last four days, the Dollar seems ready to attack the Japanese Yen for new highs since February. What would be the new frontiers? Perhaps 116.00.
Stocks to trade higher; but we aware of a pullback
US stocks points to trade slightly higher on Tuesday as investors are confidence in Santa’s rally plus Trump’s normalization. In a piece of CNBC, Jeffrey Saut, chief investment strategist at Raymond James, said that the S&P 500 has experienced a “buying climax” in terms of jump in prices plus heavy volume. Shut affirms that investors should be aware of a potential pause in the rally or even a pullback.
FYI:
Today in 1865, the thirteenth amendment to the United States Constitution was ratified, banning slavery.
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