FX Majors snapshot
|The FX majors have been rather quiet to start this week, understandably with US/Canada/Japan bank holidays on Monday.
The exception is GBP, seeing more wild volatility as the UK/EU Brexit negotiation saga continues, with a faint hope of a deal remaining.
GBP/USD remains just above the 1.26 handle, whilst EUR/USD is amazingly quiet –glued to 1.1030.
Australia’s RBA minutes from the last‘rate-cut’ meeting didn’t offer any major surprises, but the mixed data picture rolling out of China was enough to keep a lid on the AUD – with AUD/USD also quiet at 6770.
USD/JPY is always my risk yardstick and it has traded in a 15-pip range today with no real change in the risk thematic to fire up the haven flow, meaning that 108.30 price level remains.
USD/CAD is probably one of the most interesting for intra-day traders to get their trading binoculars pointed at. USD/CAD remains around1.3225 but the bounce back after Friday’s large reset lower, seems to be fizzling out.
What can we expect from today’s risk calendar?
Let’s not overlook the Bank of England Carney speech at 9.30 am London time, which is likely to be overshadowed by the ongoing tug of war in last minute Brexit negotiations – with Boris Johnson’s planned Ireland border issue resolution unlikely to succeed through the UK parliament.
The main risk event which can sway the EURJPY & EURUSD positioning is the German ZEW Economic Sentiment, due out at 8 pm Sydney / 10 am London.
I prefer to remain on the short side of Euro against almost all FX counterparts.
FOMC members update the markets later in the US dealing session –I remain bullish on USD as the Fed voting FOMC member remain slip on the December US interest rate meeting despite a high possibility of US rate cut at the end of this month.
FX Signal to watch:
USD/JPY to move from 108.30 to the ‘Key Level’ at 108.80 seems best ahead of FOMC speakers.
BUY USD/JPY @ 108.30
Target: 108.80 (+50 Pips)
Stop: 107.50 (- 50 Pips)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.