Asia Wrap: Just currencies ( EUR-GBP-JPY-SGD)

Stephen Innes SPI Asset Management

The Euro

A mix of rising 'no deal' Brexit fears robust US retail sales data and focus on ECB policy has brought EURUSD back to the low 1.12s and close to the central support zone at 1.1180/90. Under these conditions, any EURUSD relief rally could prove short-lived as price action suggests the street wants to be short Euro heading into the July 25 ECB.

The Pound

Sterling remains under pressure amid heightened concerns of a no-deal Brexit. Tory leadership contestants have stiffened their stance on the Irish backstop, and a more hostile mood has emitted from the latest meeting between UK Brexit minister Barclay and EU's Barnier. The pound has been under selling pressure since Europe walked in.

The Yen

USDJPY was relatively muted in Asia, as the principle policy battleground is shaping up between the ECB and Fed, so Euro has been just about everyone's radar

The Sing Dollar

SGD NEER edged down to 1.35% from 1.43% after Singapore export data. Keep in mind this year’s low is .93%. USDSGD traded up to 1.3618 from 1.3580 at the open so far as trader continue to view the SGD as a funding currency for high yields Asia. I don’t see many betting against a MAS easing.

Author

Stephen Innes

SPI Asset Management

With more than 25 years of experience, Stephen has a deep-seated knowledge of G10 and Asian currency markets as well as precious metal and oil markets.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.